'Bond prices to get hit very hard in 2016'

John ROB BOOKER
PROFILE
• Current Job: Founder and Trader at RobBooker.com
• Career: Foreign currency trader, best-selling author and sought after speaker. Has speaken in sold-out conferences throughout Asia, Europe and North America.

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Rob Booker is a foreign currency trader, best-selling author, and sought after speaker. He is the author of "Support and Resistance Trading", the first set of the FXStreet DVD Series. Rob hosts the daily radio show "The Traders Podcast".

Renowned for his entertaining approach to discussing the world’s largest and most volatile financial market, Rob’s analysis is read by thousands of people each day throughout the world. He maintains his Forex advisory practice close to home in Mission Viejo, California.

1. What will 2015 be remembered for?

Peak Unicorn, or the year that VC investing in startups peaked (again). Also, Uber. It will be remembered as the year that Uber got a $50 billion valuation, and carried the valuation of a whole crop of tech companies with it. I don't think this year will be remembered for any particular currency move.

Also 2015 will be the year we remember that oil got seriously pounded, the year that middle eastern tensions erupted into an unsolvable refugee crisis, and the year that one man ruined the Republican Party in the U.S. and changed U.S. presidential politics forever.

2. Which were your most important achievements this year?

I simplified my trading. I reduced my trading to one day per week (Thursday mornings) in a 2 hour window. It has been the most wonderful experience.

3. What emerging issues or trends should traders prepare for in 2016?

Oil falling to $20. Which creates chaos in the middle east. Oil falls, production remains high or even increases to sustain government operations in oil-producing countries, which further depresses the price of oil. Only war in the middle east could change this trend. And no one wants that.

4. Which will be the best and worst performing currencies in 2016 and why?

Worst: CAD.
Best: GBP.

Reason: If oil continues to fall, the CAD will get crushed. And if the UK starts to hint at raising rates, maybe the GBP makes a huge leap upward.

5. Which under-the-radar currency pair do you expect to make a big move in 2016?

The South African Rand. Or the Mexican Peso.

6. Which macroeconomic events will have the biggest impact on the FX markets in 2016?

The declining price of oil.

7. Which asset class will cause the next financial crisis?

Peak bonds. Interest rates will rise in the U.S. and corporate junk bonds will tank, and there will not be enough liquidity to support the move. Bond prices are going to get hit very hard.

8. What will you be focused on next year?

Making a television show for traders. It's called "Trading Dirty" and I can't say anything else right now about it.

9. Who are the people to watch in 2016 in terms of impact on the industry?

Draghi. Yellen. OPEC.

10. What are your New Year's resolutions?

Not applicable.

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