Friday, October 28, 2016

Central Banks will interfere in the markets if stocks drop

The US market is so much more expensive based on price to sales, price to earnings, price to book than any other market in the world that US stocks are in my opinion more vulnerable than in general perceived. 

We were in February of this year at 1,810 on S&P 1,810 from here would be a decline of more than 10 percent. 

But if the market goes to 1,810 we could go down also to 20 percent or even 40 percent. But I believe that as we would approach the February lows on the S&P at 1810 that the Fed - under the influence of the money printers and people like Larry Summers - and other central banks will step in and start to buy equities to support the market.