October 3, 2015: Fasten Your Seatbelts, We Are Expecting Turbulence Ahead…

This show was recorded on Wednesday evening, September 30. Today, Russia started bombing Syria, at least 17 bombs went off in one city in China, all Fed regions reported negative growth for the first time since 2009 and ADP reported that we have lost manufacturing jobs year-to-date, also for the first time since 2009. There is an Emerging Market crisis on the horizon, the EU is at risk, China is slowing down precipitously, the world is likely headed to recession and everyone wonders when the Fed will raise rates… Again, I don’t see the Fed raising before 2017 at the earliest and easing/negative interest rates are more likely than an increase. That said, if they do raise, lookout. It could get ugly in a hurry in both the stock and housing markets.

Overall the market continues to weaken. Watch the response to this week’s jobs numbers. My guess is that even if you get an initial bounce, it won’t hold and the down move will start again next week. But you may not even get a bounce.

Knowing how to invest in this type of environment is key. If you would like to learn more about what to do now, I am going to be teaching a special one day class: “How to trade and invest in a volatile market”. If you would like free tickets, call 84-48-Income (844.846.2663) and tell them that you read about the class on the Next Week In Stocks website. Hope to see you there!

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If you would like to submit a question to the show, or to give us feedback, please send an email to:  phoenix@tradingacademy.com. Also, check out our sister show, “The Right Side Of The Trade” on the following stations:

◾Money Radio 1510 and 99.3: Thursday’s and Saturday’s at noon

◾1100 KFNX: Sunday’s and Tuesday’s at noon

◾Of course, you can always find “Next Week In Stocks” on:

◾550 KFYI: Saturday at 1pm and Sunday at 4am

Comments

  1. William Pellerin says:

    If the yen is down 40%, why don’t cars from japan cost 40% less? Who’s cleaning up?

    • Several reasons. One is that many of the components are imported (components for steel, etc.), so they actually cost the automaker more in the local currency, driving up costs. A second is that if my currency is getting hit, I can still improve my competitive by lowering prices somewhat, but less than the total benefit I receive from the currency devaluation, increasing profits.

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