DAX record high: Confident stock market or dangerous carelessness? A financial expert analyzes the situation

DAX record high: Confident stock market or dangerous carelessness? A financial expert analyzes the situation

According to a report by www.cash-online.de, Robert Halver, head of capital market analysis at Baader Bank, gave an assessment of the current situation on the stock markets. He emphasizes that despite negative news, the stock market remains at lofty heights and the increased interest rates are not shaking the stock markets.

Interest rates, the natural enemy of stocks, have risen, but...
According to Halver, the central banks in the USA and the Eurozone have put pressure on the financial markets with rapid and dynamic interest rate increases. Nevertheless, the Fed and ECB will stop raising interest rates in the summer. Inflation is also slowly coming down again, which could have a positive effect on the stock markets. The low interest rates in which (financial) politicians are interested would also prevent a return to the previous attractiveness of fixed-term deposits and government securities.

Globalization will not become a dying species
Halver mentions that the current economy is not optimal, but massive fiscal and monetary policy measures by the CCP could remove China's loading inhibition and stimulate the gradual US interest rate reduction fantasy of Credit America again. The advantages of globalization are also too great to be abolished. Asia's locational advantage cannot be matched by the West, but conversely, China will not forego its strong foreign trade partners America and Europe.

Black swans cannot be ruled out, but they cannot be expected in every puddle either
With regard to the often predicted end of the world, Halver is of the opinion that common sense will prevail again, even among pathologically self-absorbed US politicians. Even in the hypothetical event of a system crash, you would still be significantly better off with stocks than with interest-bearing securities.

After analyzing the article, it can be seen that Robert Halver has an optimistic view of the development of the stock markets. Despite negative developments and uncertainties, he expects a positive environment for stocks. The implications of this assessment could lead investors to remain optimistic and view equity investing as an attractive option.