Jon Eade, President of Argus Research joined Tip TV today to talk about developments across markets and sees long term value for US stocks.
Fed to raise rates ahead of Presidential cycle
Eade began by commenting that suspects the Fed are aiming to raise rates before the Presidential cycle next year, in order to assert its independence. Looking to Oil he feels that the Iranian deal sell off from $60 to $50 was overplayed and that he expects prices to edge a bit higher again by year end.
Gold under pressure, US stocks to strengthen
Looking to Gold, Eade notes that the yellow metal tried to rally from lows over the last 9 months, moving in the opposite direction to equity markets. He thinks that it will continue to stay under pressure within a range between $1,100 to $1,200. Finally, when asked about the impact of dollar strength on US earnings, he feels that the key correlation here has been euro weakness, and that once stability has been maintained in Europe, then US earnings will be boosted.