The opportunities and risks of the current stock markets - A comment by financial expert Georg Anastasiadis

The opportunities and risks of the current stock markets - A comment by financial expert Georg Anastasiadis

According to a report by www.merkur.de,

The stock markets continue to rise, despite uncertain times. However, many hesitant investors have missed the opportunity to escape inflation by investing in stocks. The German stock index Dax is already trading close to its historic highs again after a sharp decline in 2022, and the technology-heavy US Nasdaq index has gained 40 percent since the beginning of the year.

The “most hated rally” of all time is seen as worrying by many analysts as it contradicts global risks and recommendations from major investment houses for investor exits in this environment.

However, a stock market miracle has not occurred; instead, there has been a continuous price increase, despite all concerns. This makes it clear that stocks should be bought precisely when they are undesirable.

The price recovery appears to be well advanced, but there are still inexpensive laggards such as chip giant Intel. The risks are still present; in particular, the recent interest rate increases in the second half of the year could have a negative impact on liquidity. Nevertheless, central banks are expected to take measures to support the stock market.

As a result of the weak economy and easing price pressure, the US Fed and the ECB are expected to make a mini-increase in interest rates, which could benefit the stock market.

In general, it turns out that stocks are still a way to escape inflation. It is all the more important to act courageously in such uncertain times and to take advantage of the opportunities on the stock market. At the moment it seems as if the stock markets will continue to react positively, but an exact forecast remains uncertain and depends on many factors.