EASTER 2018, THE MARKETS ARE ON THE EDGE !
The first quarter of 2018 saw the return of volatility and March 2018 saw the final break of the ascent of the Technology sector that has powered the 2009-2018 equity markets rally.
The problem is that in the past week, the demonstration was made that momentum has gone and an attempted break out to the upside at the end of February was followed by heavy selling for no real reason, simply the end of the Buy on Dip mentality and institutional investors deciding to bail out for now.
This Week we are changing the format of our Weekly Market Reviews merging them all into one single post where we review the financial markets and focus on issues that we see worthy of interest through charts and comments.
There are times in the financial markets, like in politics, where it is best to withdraw and stay on the sidelines waiting for better times.
SELL AMERICA, BUY CHINA
In October 2014, in our of strategic pieces titled THE NEW KONDRATIEFF CYCLE, we outlined the case that 2013 marked the end of the US Dominance of the World and that the Chinese Kondratieff cycle had started.
Kondratieff Cycles are 60 years cycles of inflation and deflation that are usually associated with an era of technological change and / or of political dominance of the world. Nikola Kondratieff was a Russian economist who identified all the long term cycles dating back to 900 that corresponded to all the changes in world economic leadership over history from the Italian cities such as Venice to Portugal, Spain, Holland, France, the British Empire and finally the USA after the second World War.