Financial expert analyzes: What will happen next on the stock markets in 2024? Everything about the structural break, labor shortages and the interest rate environment.

Financial expert analyzes: What will happen next on the stock markets in 2024? Everything about the structural break, labor shortages and the interest rate environment.

According to a report by www.t-online.de, the stock markets have recorded a sharp rise in the past year. The prices on the stock exchanges only showed one direction: upwards. But how will the market develop in 2024?

The overall economic conditions for the markets have changed permanently since the outbreak of the corona pandemic. A structural break has taken place, characterized by weaker economic growth, stubborn inflation, high interest rates and tighter financing conditions. This is expected to lead to slower economic growth and a moderate outlook for corporate earnings. These developments could also impact the stock markets.

Another issue that could impact markets is labor shortages in many countries, leading to production barriers and supply constraints. This labor shortage could lead to higher wages and ultimately rising inflation, which in turn could affect company-related finances.

Central banks are expected to be reluctant to raise interest rates, leading to a tight interest rate environment and a moderate outlook for corporate earnings. This, coupled with the prospect of lower economic growth, may require a cautious approach to investing in stocks.

In this context, interest income on bonds remains attractive, particularly on short-term government bonds. Artificial intelligence will continue to play a significant role in 2024, and the semiconductor industry could benefit from integrating AI into production processes.

In summary, stock markets may be overly optimistic and current prices are not justified by actual economic conditions. Investors should therefore be patient and pursue a prudent investment strategy, especially in the US and European stock exchanges.