2015 to be a very challenging year ......

We have completed 2014 with the following result :

RUT UP 3.50%

Dow UP 7.52%

S&P 500 UP 11.4%

Nasdaq UP 13.40%

Bonds UP 23%

Most genius on Wall Street missed Bond rally......

Many retail were stuck in Russell 2000 which produced measly 3.50%

Oil Down 46%

Silver Down 19%

Gold Down 1.51%

US$ gained 10.73% against Canadian $

US$ gained 11.69% against Euro

NOW...the question is what may happens in 2015...

US will dominate positive news in 2015, with strong employment gains and GDP gain above expectations.....

Europe still struggling and no sign of growth even in Germany.

China is hitting deceleration and may not stop until 7% GDP downtrend

India is poised to resume above 5% GDP growth and may exceed expectations due to Oil windfall.

Canada is in serious trouble with Oil & commodities taking it on the chin, Alberta, Saskatchewan may be severely affected with lower employment & deficits, thus continued weakness in Canadian currency.

Oil is headed lower to $40 area and may hit $37 as major support.

Interest rates in US is expected to go up in 2nd half of the year.

US$ will continue to move higher despite effort by China, Russia, Iran & Middle East to trade in non US$...

US Markets had 6 year of consecutive gains, 2015 may be in less than 5% gain for the year as interest rate worry will keep this uptrend in check.

SO...how to invest or trade.....First know that it is going to be the first tough year to make money in 7 years, so expectations needs to be gain of 3% area........

Buy & Hold what is in uptrend or risk losing money in 2015...

With Oil in continued slump to $40 area, many oil dependent economies will slow down big time, this includes Middle East, Canada, Russia that will reduce demand for many US based product & services......

SO...do not celebrate cheap oil, it is coming with serious implication for worldwide economies, i do not expect Oil to resume its uptrend until 2016......

I have highlighted serious issues for many world economies including US, approach investing & trading with extreme caution & with great conviction. IF you do not know a stock inside out, do not buy and reduce exposure for 2015, its not business as usual.

BLOG does NOT give buy or sell.

Saleem

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