US large-cap blue-chip stocks are still the place to be

In December last year I outlined a number of factors that were bullish for US stocks, and said that they would continue to be the primary beneficiary of Fed policy and other favourable macro forces. My bullish outlook has not changed, and this article explores more reasons to be bullish on large-cap US equities.

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The 5.3% correction in US equities is likely the best buying opportunity you’re going to get

For those that have been sitting in cash and have missed the 25% rise in the S&P 500 since November 2012, the recent 5.3% correction likely represents the best buying opportunity you’re going to get. The index bounced perfectly off its uptrend line and the outlook for US equities remains bullish.

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Why talk of Fed “tapering” is just talk

Investors expect the Fed to begin reducing QE as early as this summer. However, whether or not the Fed follows through on “tapering” largely depends on whether the US economy can stand on its own two feet without support from the central bank? Our view is that it cannot and this article examines why that’s the case and why talk of “tapering” is just talk.

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Two short candidates to take advantage of the new market downtrend

Since reaching an all-time high of 1,687.18 on 22 May the S&P 500 has established a downtrend which so far has seen the index fall 4.7%. This article shows the new trend in the major US stock average and examines two potential short candidates that could take advantage of the new market downtrend.

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