With the start we have had to 2016 it really feels like the next big crash has started. Something has not felt right about the economy and the markets for 7 years. I have anticipated a crash many years before now. Each time it looked ripe for a fall another round of QE came out.
So what is different this time? The fact that we are comming off 0 rates with the FED recently hiking really changes things up a bit. They had to hike when they did or confidence would be lost. The market is not happy and is selling off. So there are two options:
A) Leave rates unchanged or even cut back to 0
B) Continue with the hike
Option B would give off the impression the FED is confident in the markets and that investors should not worry. Option A would cause panic that they were only able to hike a quarter point and after 7 years the hope of a return to real rates is over. Option A may be all that they have in the next meeting or two. If they continue with option B for the next several meetings stocks, bonds, and real estate will continue to sell off.
Commodity markets at massivley depressed. The only thing still positive is the S&P and mainly driven by the FANG's. In a time like this I do not see any traditional investments that are compelling on a good risk / reward ratio other than commodities.
That leaves forex as a great choice. With forex or even day trading stocks or futures at least you can set your stop loss and take profit at set levels. If you enter trades with potential larger gains than stop out levels you are making an invetment. Whether it is a tangible good or not it is an investment. People can say trading is not investing, but is buying bonds or derivites a tanible assett either?
Cash positions and short term trading is probably the safest approach right now for the volatility ahead.