JSE above 30 000!

This morning the JSE Allshare broke through the 30 000 level. To put this into perspective, at the height of the market before the 2008 crash, the Allshare was trading at 33 000. This is only 10% from here.

The strength of the markets is supported by a weak US Dollar and more quantitative easing measures from the US government to stimulate the US economy.

What this means is that the Federal Reserve will be pushing their printing presses to the limit to print more dollars. These dollars will find their way into the market, bypassing banks and eventually ending up in the stock market looking for yield.

As with any country printing more money while growth remains mediocre, inflation will follow, maybe not in the short term, but definitely over the long term. This is the main reason behind the gold rally.

The ALSI futures are currently trading at 27011 which is up 242 points or 0.9%.

Safe trading