Now the air goes out, market commentary by Werner Rüppel
Frankfurt (ots) – As is well known, the tide lifts all boats, and that has them
Liquidity flood in recent years also done. The central banks had
according to the motto “Whatever it takes” not only the interest to practically zero
smuggled down, the gods of the markets also have a big
quantitative easing government and corporate bonds and sometimes equities
bought up. So it’s no wonder that the stock markets are experiencing tremendous upswings
have done – and especially growth stocks, whose proceeds are significant
have increased, but who are not yet making any or very little profits,
have walked. With the actions of the central banks, almost everything has increased until
to cryptocurrencies like Bitcoin, which are sometimes used for money laundering.
Memories of the dot-com bubble and the new market are particularly strong
woke up last year.
But now the tide has turned and inflation has been massive worldwide
tightened, inflationary pressure is likely to remain high and the central banks will have to
raise interest rates and can no longer buy securities. The Fed has in
raised their key interest rates for the second time in the past stock market week, and
with a step of 50 basis points also quite strongly. And also the
The European Central Bank will have to react if it does its job,
to ensure stable prices seriously.
The liquidity bubble has already started to burst and the air is likely to continue
escape. Thus, in the previous year, highly pushed Internet stocks,
Online sellers or delivery services already have to accept high price losses:
Delivery Hero minus 69 percent, Netflix minus 69 percent, Zalando minus 55
percent, Hellofresh minus 48 percent and even Amazon have 30 percent
lost. Even the children of the bull market must now realize that the stock market
is not a one-way street and that the prices of highly valued assets are not alone
therefore continue to rise because they had previously risen sharply and relatively steadily
are. The stock market follows trends for a long time, but there are also trends
Trend reversals, and currently taking place given the change in monetary policy
obviously a place.
But it is not only in the case of highly rated technology stocks that the air threatens to close
escape. The cryptocurrency Bitcoin is also likely to continue to become cheaper.
After all, bitcoin has no intrinsic value, and the greater fool theory,
according to which everything is worth as much as someone else pays for it, comes first
line in rising markets. The share price could also drop significantly
from Tesla, the expectations of investors and analysts are high
rated electric car manufacturers at an extremely high level.
Incidentally, the bubble in ten-year government bonds is also likely to burst
other eurozone government bonds if the doping in the form of purchases by the
ECB is gone. After all, there will soon be interest rates again in Euroland, and
the banks will reduce their custody fees again.
Experienced investors have reacted to the changed situation, which in addition to the
Pandemic that has not yet been overcome worldwide are the war in Ukraine and the
contribute to the resulting consequences for inflation and the global economy,
already responded. Warren Buffett and Jens Ehrhardt bought oil stocks.
Ehrhardt is even right about his FFM fund, which has dealt with a number of crises so far
has successfully managed, sold technology stocks completely and bets
instead, among other things, on selected agricultural stocks and utilities.
The analysts at LBBW are also of the opinion that tech stocks are having a hard time
will. They expect a difficult summer months for stocks and recommend one
more defensive stance, with energy as a good hedge against
rising energy prices.
For equities, profitability and stable profits are what count again. How say
Warren Buffett: It’s not until the tide recedes that you’ll see who even has one
wearing swimming trunks.
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