S&P 500 sets new record high…Emerging Markets long way to go

Today the S&P 500 set a new record high. If the Federal Reserve signals a continuation of their easy monetary policy, then it’s likely this bull market could continue to rally through year end. I’m holding my positions and remain especially optimistic about the upside opportunities in Emerging Markets.

Jerome Powell, the Chairman of the Federal Reserve, is known for his inability to sweet-talk Wall Street, so I don’t have high hopes for this Wednesday’s FOMC press conference. If he yet again manages to squander an opportunity to conciliate investors, then I’d see that as a buying opportunity. Over recent months the FED has walked back two rate increases and also resumed Quantitative Easing to stabilize the overnight lending market. So regardless of what Powell says, the FED is in an easy money mode.

Emerging Markets are starting to pick up steam. Over the past month, Emerging Markets have outperformed the S&P 500 by a factor of 2.5 times. I expect this trend to continue, as long as US-China trade negotiations stay on track.