MoneyMasters Investment thoughts for MyEcon Members.
Dear Wealth Builders Group and MyEcon Members,
From time to time WBG will discuss various aspects of the U.S. economy, European Union, China, Australia and the Middle East. WBG has investment and financial business interests and academic experience in these geo-political and economic areas of the world.
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My recommendation for investments from June to October 2018.
The United States economy is setting record growth and lowest unemployment (3.9) numbers in 18 years. The positive effects of the Trump tax plan are in full swing.
The next five months Should continue economic growth, with a slight rise in interest rates to control inflation. Stock market growth will continue, more slowly, while the markets consolidate and review future potential trade agreements. There is a sense of business opportunity and real job creation for America. However, Possible trade tariffs with the EU and China could be potential stumbling blocks on short term gains. However, my long term forecast over the next 12 months is bullish in equities. The Feds, to combat inflation, will lead to higher interest rates in the near future. I would not purchase long term bonds or notes longer than two years. Money funds in cash equivalent assets (money markets, CD’s, short term Treasures funds and high quality, 90 days or less, commercial paper) are a good choice to maintain liquidity for future investment positions.
I would not purchase gold or silver, the markets are correcting and it is not clear if upword or downward movement is trending.
Non precious metal commodities like food basics may continue to have greater upside potential in the near future.
Oil and natural gas have prices are beginning to stabilize; however, the situation in the Middle East could change everything. I see future appreciation in oil prices and natural gas possibly going higher, but not as fast as oil. I would not recommend purchasing a position until stability has been established.