Optimistic Analysts: Stocks and Crypto on the Rise!

Optimistic Analysts: Stocks and Crypto on the Rise!

In recent weeks, market sentiment has stabilized, largely due to lower interest rates and easing inflation fears. Thomas Hainlin, senior investment strategist at the U.S. Bank Asset Management Group, is optimistic and sees a promising environment for risk assets such as stocks and cryptocurrencies. Latest economic data showed the U.S. economy added 227,000 jobs in November, beating expectations, even as the unemployment rate rose slightly to 4.2 percent. Compared to the previous year, the consumer price index grew by 2.7 percent, while food and energy prices remained stable finance.net reported.

Inflation trends in Germany

In Germany, inflation data up to November 2024 also shows a worrying development. The consumer price index rose 6 percent compared to the same month last year, indicating continued high levels of inflation. Analysts warn that persistent inflation could threaten consumers' purchasing power. This could influence future ECB actions and limit the scope for possible interest rate hikes, as inflation remains a key issue in the Eurozone Statista determines.

The US Federal Reserve recently cut its key interest rate by 0.25 percentage points to stimulate the economy. Hainlin advises investors to make portfolio adjustments to take advantage of current market conditions. This is particularly relevant as the cryptocurrency Bitcoin has also seen a significant increase in value over the same period, surpassing the $100,000 mark on December 5, 2024. The reasons for this increase lie in general market stability and expectations of a more favorable regulatory environment under the incoming US administration.