So the Fed yesterday announced that they will delay rate hikes YET AGAIN with a higher probability to hike later this year. That brings me to my ultimate question of where they are headed?
Some may be optimistic, while others, such as Larry Fink are a little more pessimistic. Fink believes that there could be a huge correction (15%) if governments don't take fiscal policy actions combined with aberrant results from referendums in Europe.
" If governments move to spur their economies, then markets could go in the other direction and rise 10 percent, he told Erik Schatzker Thursday on Bloomberg Television."
There is persistently a growing anger from low rates hurting savers and pension plans while people with large sums of capital are benefiting.
Fink sees a Federal Rate Hike probable in December.
"We are in more dangerous water in Europe than we have been in years," said Fink. He pointed to the upcoming referendum in Italy where voters will decide on constitutional changes proposed by Prime Minister Matteo Renzi to limit the power of the Senate, the upper house of parliament."