Forecast on interest rate policy and market development: Financial expert expects increasing returns and relies on USD, JPY and CHF. Be careful with German stocks.

Forecast on interest rate policy and market development: Financial expert expects increasing returns and relies on USD, JPY and CHF. Be careful with German stocks.

According to a report by e-fundresearch.com, financial experts predict a restrictive stance from central banks, which will only lower interest rates from mid-2024 and at a slower pace than in previous cycles. This should lead to slightly higher bond yields, despite expectations of continued significantly lower bond yields over the next 6-12 months. The US economy is expected to support the dollar while the euro continues to face headwinds. Positive on the Japanese yen and Swiss franc, experts expect a gradual recovery in stocks, although they remain cautious due to stretched valuations and limited near-term earnings potential.

This analysis has potential implications for the financial market. Central banks' hawkish stance and higher bond yields could lead to changes in bond and currency profitability. In particular, the forecast of a gradual recovery in stocks suggests possible opportunities for long-term investments.

However, the problems of the German stock market are also pointed out and the recommendation is to view it with caution. This means that investors and financial experts should consider the structural problems of the German economy compared to its competitors and perhaps develop appropriate investment strategies to overcome these challenges.