Financial expert warns: price collapse in 2024 and recession – reduce equity quota!

Financial expert warns: price collapse in 2024 and recession – reduce equity quota!

According to a report by amp.focus.de, Ralf Borgsmüller, partner at asset manager PSM, predicts a sharp drop in prices for the 2024 stock market year in the first half of the year due to the central banks' sharp interest rate hikes. This measure is expected to trigger a recession and take a heavy toll on corporate profits. Borgsmüller also warns that possible interest rate cuts by central banks are not a good sign, as in the past prices have fallen sharply after an interest rate cut.

The impact of this forecast on the market and consumers could be significant. A sharp drop in prices leads to a loss in the value of stocks and other assets, which could negatively impact investors and investors. The recession and strain on corporate earnings could lead to layoffs and general economic uncertainty, which would affect consumer spending.

Another aspect is Borgsmüller's recommendation to reduce the equity quota and park liquidity instead. This recommendation could lead investors to reduce their positions in stocks and instead focus on safer investments, which in turn could weigh on the stock market. Overall, a period of economic uncertainty and turbulence on the stock markets can be expected.

It is important that investors and investors are aware of the potential risks and adjust their investment strategies if necessary. Borgsmüller's advice to reduce the equity allocation is a measure that should be considered to protect against possible losses.

Ralf Borgsmüller's analysis shows that there are likely to be significant changes on the stock markets in 2024, and investors should be cautious and adjust their portfolios accordingly.