The 2015 Fireworks

By | January 6, 2015

Well what a start it’s been to 2015 with oil now breaking the $50 barrier and the crisis in Europe firmly back on the radar.

Our expectation is for 2015 to be a big turning point for the world economy. We’re already seeing weakness in commodities and with the new low in oil overnight, it appears that things are beginning to crumble.

Oil is often a leader for things to come and we expect this to be just the beginning.

Money is flowing out of Europe and China and this is really pushing up the USD which will have far reaching effects.

The next 12 months will be a critical time for bonds and gold. As people get increasingly nervous about the state of economy people look for security. That may well be OK for gold. While it’s currently selling off, any instability will see it push back to the highs.

For bonds however we are at an interesting point in our history. With interest rates so low there seems little incentive to hold bonds, however people continue to bid them up. There is no doubt we are in the midst of a bond bubble. It’s just a question of when prices unwind – certainly not if.

This is a good year to be on your toes, as opportunity is sure to present itself for traders who are prepared.