The tenor of the media chatter is the market could suddenly turn to the dark side, now that it has reached 2016 highs.
“Investors cut their holdings of stocks to the lowest in at least five years in March, despite a recovery in global equity markets.”
The market abhors a vacuum, and when money leaves, it creates a vacuum, which then produces a draw. Where there is yin, there is also yang.
“Global funds are cautiously venturing back into Chinese equities after prices collapsed to 4-1/2-year lows in February, taking advantage of cheaper valuations tobuy stocks they believe will benefit from China's shift to a consumption-led economy.”
The market could just as easily go to the light big time, despite the apocalyptic preaching from hilltop screamers, such as Bill Gross.
"Unless real growth/inflation … can be raised to levels that allow central banks to normalize short-term interest rates, then south instead of north is the logical direction for markets.”
Maybe, but, in the meantime, if the market should seek the light, then look to the small-cap arena for cheap plays with potentially big returns. Think fuel-cell tech, a history of promise but never able to reach prime time …
“Advancements in on-board computers, electric motors, higher-pressure systems and general cost-cutting have made fuel cell cars ready for commercial production.”
Maybe a couple of former high-fliers are ready to make a slow but steady return …
“Canadian fuel cell developers that include Ballard Power Systems (BLDP) and Hydrogenics (HYGS) have been busy putting their product in everything from trains to buses and forklifts.”
Yes, maybe fuel-cell tech is headed for prime time.