Market in High Risk Zone

Quick Facts

1) Interest rate will be going up in 2015

2) Bond buying program will ceased.

3) Stocks have been all time high due low yields driven by bonds over the last few years

4) Oil is in over supply stage, no one really knows how low they could go, oil prices has always been a leading indicator of market movement.

 

Possible outcomes

1) An larger correction of stocks will likely occur, when interest spikes and bond fails.

2) Points 1 & 2 will likely result in a somewhat major correction of bond price.

3) Money literally has no where to run with overprice bond and stock.

4)Possible round of mortgage crisis round 2 with spiking interest rates.

If you have been investing continuously through a monthly investing program, you can safely ignore market movements and continue to invest, however if you are thinking of investing a bomb – the levels for both stocks and bonds are out of my comfort zone right now.