Investors should take a break right now, this is in my humble opinion. Take a break right now to assess what is going on in the global stocks markets, the macro economy before investing your monies further.
For against the macro economy already facing the vagaries of the trade wars, the geo-political tensions between US and Iran, Brexit and the current definition as to what constitute a developed country (versus developing country), the Federal Reserves will be making a key decision as to whether to cut interest rates for the first time in almost a decade this week and analysts are expecting the Federal Reserves to do so (i.e. to cut interest rate).
Well, after reading much on the likely motivations for Federal Reserves to cut interest rates, I really am not sure whether a lower interest rate will help US and the global economy in these current times.
At the minimum, a low interest rate will encourages people to go into stocks in a bid to achieve a higher return, but looking at the rather high valuations of stocks these days, will the migration of interest into equities cause a bubble in equities to form?
I am confused at the state of the current stocks markets and have been so since May 2019 when developments in the macro front left me unsure of investments in the middle timeframe. When one is not certain of investing, I believe it is best to keep the cash in your pockets and wait for better opportunities to invest in your monies.
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