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Stock market soaring: hype about artificial intelligence is driving markets
Decision-making aids for investors in the current stock market rally: Hold or wait? Roland Ullrich provides insights into the psychological mechanisms and possible developments.
Stock market soaring: hype about artificial intelligence is driving markets
The current stock market prices have been on the rise for weeks and are almost reaching record levels across the board. In addition to the common stock indices, the demand for gold and crypto currencies is also increasing. Trading coach and stock market expert Roland Ullrich explains in an interview that the current price development is not solely due to the hype surrounding artificial intelligence or the expectation of falling interest rates. Rather, there are psychological mechanisms behind it that drive investors to continue investing in the market so as not to miss out on potential returns.
Ullrich emphasizes that the current development on the stock markets is characterized by a considerable amount of irrationality. The strong liquidity in the market is looking for investment opportunities, resulting in overheating of various asset classes. Despite speculation about possible key interest rate cuts, these have already been priced into the markets. The psychological component and the fear of missing out on positive performance continue to drive investors, even though a market correction may be overdue.
The possibility of a speculative bubble and potential correction should prompt investors to exercise caution, especially in the current overheated market. A small correction would be normal and expected, even in an overall positive year for the stock markets. It is advisable to act with a long-term focus and not to be guided by short-term trends and fears. It is difficult to predict the right time to enter the market, so a step-by-step approach makes sense in order to get the best possible entry prices.