We're heading towards an earnings trough,said David Kudla,Founder and Chief Investment Officer of MainStay Capital Management.The market will suffer from:
1.A Fed rate hike coming;
2.The strong dollar;
3.43 months without a 10% correction.
I still think we're in a long-term secular bull market.We're still positive on the US.We just think with the opportunities overseas and alternatives,you should look for negatively correlated investments because of the volatility we're going to see in the US.
We like the WisdomTree Hedged Europe Equity Fund.It's focused on mega caps that will benefit from a weak euro.Europe is embarking on QE,which inflates market value;while the US is embarking on tightening monetary policy.*
CNBC's floor reporter Bob Pisani also noted how popular this WisdomTree etf has been lately as it is hedged against a declining euro.*
Speaking at a press conference today,Fed chair Janet Yellen said a rate increase could be warranted at any FOMC meeting after April.We can't rule out June.*
WisdomTree Hedged Europe Equity Fund (HEDJ)