As yields on bonds and interest rates trend lower, investors around the world are looking at equities to save the day. It doesn't matter if it's Europe or Asia, equities have been in a strong upward trend - just the opposite of what has been happening to interest rates. Can this trend continue? The answer may surprise you. Just this morning it was released that 52% of America is not in the U.S. stock market, they are not in mutual funds, nor do they have an IRA account. That's an awful lot of firepower that is still on the sidelines that potentially could move into stocks. Here's my concern, these are largely uneducated investors and that could cause problems for the market down the road. In the short term, this may be a good for stocks, but it may not be the best move for the market and here is the reason why. When so many investors jump into the market (remember this bull market is 6yrs old), it reminds me of the "the irrefutable laws of the market". You may enjoy watching this short video I made on how the markets works. It has been an interesting week to say the least and I'm going to be looking at all the major indices along with gold (FOREX:XAUUSDO), crude oil (NYMEX:CL.M15.E) and the euro (CME:6E.M15.E.) Gold is actually higher for the week, crude oil is having its fourth week in a row moving higher and the Euro continues to erode. I'll also be looking at some weekend trades and one stock that may represent a very low-risk opportunity next week. Have a great trading day and a wonderful weekend.
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