By James Dondero | December 5, 2014
- We believe that a possible stall in the dollar’s rise could lead to a short term bounce for currencies such as the Euro & Yen, and even crude oil by year’s end.
- We also feel weaker yields are consistent with worries over deflation, and that while yields continue to bounce and test, a bottom has yet to be confirmed.
- Market breadth has clearly been lagging, which can be attributed to investor’s preference of large caps over small caps. We expect this to improve going forward, and do believe that Santa will deliver the traditional Christmas Rally.
- While overseas markets have been weaker than those in the US, we remain bullish on equities from select geographies, such as those in India, and Chinese A-shares.
- Finally, the outlook regarding Argentine bonds is favorable. Argentina’s troubled economy, rising inflation and weakening currency will likely result in an agreement with holdout creditors in 2015.
The views and opinions expressed are for informational purposes only and are subject to change at any time. This material is not a recommendation, offer or solicitation to buy or sell any securities or engage in any particular investment strategy and should not be considered specific legal, investment or tax advice. There is no guarantee that any of the forecasts will come to pass. Past performance is no guarantee of future results.