Why investors' expectations are currently too high - a look behind the scenes of the stock market year 2023.

Why investors' expectations are currently too high - a look behind the scenes of the stock market year 2023.

According to a report from www.capital.de,

The stock market year 2023 continues the exaggerations of previous years. The stock markets are experiencing records on the US options markets and gaming stocks such as Nikola, Curevac and Plug Power dominate the price lists. The US Federal Reserve announced a pause in its interest rate increases, but with the signal of further interest rate increases. The ECB also raised its interest rates slightly. But despite this news, there is no sell-off on the stock market and prices continue to rise. However, there is also a stomach ache, as this year's gains were driven by only a handful of stocks and valuations are very high compared to the long-term average.

The robust but mixed global economic development could also cause disappointments. The quarterly season that starts with US banks could be a catalyst for the market. Expectations are high, especially for companies like Nvidia.

As a result, it is by no means just interest rates that could trigger stock market storms. The profit development of companies and the expectations of investors are also important factors that can influence the market.

So it remains to be seen how the quarterly season and the company figures develop. Investors should therefore pay particular attention to further developments on the market and diversify and hedge their portfolios accordingly.