"Wall Street celebrates the New Year."
the capital market seismograph of the team of Professor Dr. Rudi Zagst (TU Munich) starts the year 2018, as he ended the year 2017 - in a buying mood. The stock market barometer continues to give the green light for equity investments in the USA. For a year now, the seismograph has been signaling a quiet market on Wall Street that is rising in line with the trend.
As you know, the scientists distinguish between three phases in the US equity market: "green" (quiet market = buy), "yellow" (turbulent market with positive expectation = invest, but with hedge) and "red" (turbulent market with negative expectation = do not invest).
Currently, the probability of a calm, positive US equity market remains at an extremely high 97 percent. The probability for a turbulent, volatile market with a positive trend ("yellow") is two percent, the probability for a bear market ("red") is still only one percent (chart below).
The seismograph signals a continued positive trend on Wall Street for the coming month. Since the US stock market generally indicates the trend on the world stock markets, the seismograph's statement supports the optimistic orientation of the private-wealth stock market indicator. Although German equities are very highly valued, the model has for some time been proposing an equity quota of 60 percent of the individually identified appropriate proportion of equities.
Note: Despite careful selection of sources, no liability can be accepted for the accuracy of the content. The information provided in private wealth is for information purposes only and does not constitute an invitation to buy or sell securities.