2016 Market OPEN

What brings 2016?

First trading day in 2016 brings slowdown in world economy. First PMI report caused China market close with -7% hit, that spirally effect hit European market and soon after Us market.  What we can expect, as answer  to weakling of Chinese economy Chinese governing can answer with further weakling of Yuan. This could effect on South Korea and Japan further weakling YEN/USD.  The Euro is still under  1.13 will stay for longer period and it may be carving out a top below the 1.11 figure against the US Dollar having rebounded as expected after last month’s ECB policy meeting.
The U.S. dollar index, was up 0.17% at 98.95, off lows of 98.12 hit earlier in the day.  As Emerging and EU markets are slowing down US will probably settle down after first hit on opening.  At the moment everything is on
Long period of bull market like the one we’ve had, can brought market correction (crash) like we had in history,  in the late 1920s. in the late 1990s, in 2007. Usually, however, it isn’t different this time, and normality reasserts itself with a vengeance.
According to several historically valid measures, stocks are now more expensive than they have been at any time in the past 130 years, with the exception of 1929 and 2000 (and we know what happened in those years).
Current PE ratio of at least 26 is miles above the long-term average of 15. In fact, it is higher than at any point in the 20th century, with the exception of the months that preceded the two biggest stock-market crashes.

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