Friday 1 January 2016

Predictions for 2016

Here are my predictions for 2016:


1) 2016 is finally the year when the Euro breaches parity to the Dollar:

EUR/USD (EURUSD=X)

2) 2016 will prove to be a year of significant under performance of risk assets, particularly global stock markets and emerging market currencies:

S&P 500 (^GSPC)
USD/INR (INR=X)

3) 2016 will prove to be the year where carry trades get liquidated as significant Yen strength resumes:

EUR/JPY (EURJPY=X)
AUD/JPY (AUDJPY=X)

4) Volatility surges in 2016 as global risk aversion increases significantly:

VOLATILITY S&P 500 (^VIX)

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