Jeff Yastine Outlines the High-Risk Expectations Hold on the Market

Just a month ago, if you can remember, the NASDAQ fell 10 percent while the S&P 500 lost around 12 percent. At the beginning of February Jeff Yastine wrote and said that in almost thirty years of being an investor, He has never experienced a bull market like of late. One that comes to an ultimate stop and plunges down a cliff forever in such style like in the age of Wile E Coyote. Tables turn. A month plus later, the NASDAQ’s is blooming and at a new all-time high. Perhaps, in a week’s time, the S&P 500 will be better. Almost guaranteed to say it will rise. View Jeff Yastine’s profile at LinkedIn.

Then comes the expectation game, and we wait. As at the moment, everything revolves around the next earning seasons. Seasons when the businesses and corporations announce their quarterly margins. As it is, the first quarter season begins next month (April). Jeff Yastine says that Gold man Sachs expectations are that S&P 500 firms will report gains up to 17 percent and maybe more. From other estimates, suggestions are that the companies’ profits may indeed, jump to 18 percent in the second quarter, and in the third quarter, rise to 19 percent. With these projections, Jeff Yastine wrote privately to his subscribers and said that the report of better earning from institutions would most likely lead to a rise of ‘fear of missing out’ on higher stock prices due to rising interest rates. Naturally, what he meant was that it would hardly come as a surprise if the stocks go higher in the coming weeks.

However, such a situation comes with risks as it raises the stakes profoundly. As Jeff Yastine indicates, the anticipation of higher quarterly profits is so high that it takes only a small trigger to send the market in a downward trend. Anything from a rise in energy cost, interest rates, or a slow day in trade would warn the Wall Street strategists. As a result, they would set their estimates to lower values and trigger a downturn in stocks. It’s always the nature of investment institution to want favorable stock prices. However, the truth is that the money at risk come from investors. Visit Jeff Yastine on facebook.

Before you dismiss Jeff Yastine, take this as an extended warning. It’s a way of cautioning against a rise in interest rates and market risks. Therefore, the best approach lies in shifting your portfolio into value-laden investment. Such investments withstand higher rates and bring benefits in the long run.

Read more on Talk Markets: http://www.talkmarkets.com/contributor/Jeff-Yastine/(5%)