Suche
Mein Konto
Interest rate cuts as a driver of the stock markets in 2024: A financial expert's recommendations for investors.
According to a report from www.tagesanzeiger.ch, the US Federal Reserve's expected interest rate cuts are expected to have a significant impact on financial markets. Although the Swiss National Bank also plans to cut the key interest rate, this is expected to have little impact on the stock markets. The Federal Reserve has signaled it could cut interest rates three times in 2024, while markets expect up to six rate cuts. Exaggerated expectations can lead to an overvaluation of share prices and, if interest rates fall less than expected, this can lead to price pressures. In addition, projected economic slowdowns are accompanied by interest rate cuts, which could affect companies' earnings momentum. The Swiss stock exchange is tight...
Interest rate cuts as a driver of the stock markets in 2024: A financial expert's recommendations for investors.
According to a report from www.tagesanzeiger.ch,
The US Federal Reserve's expected interest rate cuts are expected to have a significant impact on financial markets. Although the Swiss National Bank also plans to cut the key interest rate, this is expected to have little impact on the stock markets. The Federal Reserve has signaled it could cut interest rates three times in 2024, while markets expect up to six rate cuts. Exaggerated expectations can lead to an overvaluation of share prices and, if interest rates fall less than expected, this can lead to price pressures. In addition, projected economic slowdowns are accompanied by interest rate cuts, which could affect companies' earnings momentum.
The Swiss stock exchange is closely linked to Wall Street, and possible price corrections in US stocks could also affect Swiss stocks. For this reason, defensive Swiss stocks are recommended as alternative investment options as they have catch-up potential and are less overpriced than US tech stocks. In addition, geopolitical events such as the presidential election in Taiwan in January and the US presidential election in November 2024 are expected, which could dampen market sentiment.
It is therefore recommended to rely on a mix of solid, defensive quality Swiss stocks and bonds from good Swiss franc borrowers in 2024. Euro or dollar bonds and foreign currency bonds could also be considered, although considerable currency risk must be taken into account.
Overall, as a financial expert, I recommend going into the new year with modest expectations and focusing more on defensive stocks, especially from Switzerland. Good diversification is important, so an ETF on the world stock index ACWI could complement the portfolio. Nevertheless, investors should be warned against too much optimism in 2024 and follow developments on the financial markets closely.
Read the source article at www.tagesanzeiger.ch