The January effect did not give the bear a chance-but from mid-February a Goldman Analyst sees a trend reversal. This expects investors.
• “January effect” strengthens the markets
• Trend reversal expected from mid -February
• Goldman Sachs expert recommends protection
The “January effect”
There was hardly any space for bears in January between risk -loving small investors, stock returns of large companies and the demand for retirement provision, explains Scott Rubner, tactical strategist at Goldman Sachs. But that could change soon.
According to Marketwatch, Rubner refers to the “January effect”, which describes a strong market dynamics at the beginning of the year, which is difficult to break through. The expert referred to the AI quake in connection with the Chinese startup Deepseek. As a result, the Nasdaq 100 futures fell in the low of more than five percent, but quickly recovered. “If that hadn’t been January, we would not have recovered so quickly in my opinion. There is a lot of capital into the market that is looking for such 5%corrections,” quotes Marketwatch Rubner.
“Tactical Bears” take over the helm
However, the situation on the market could change very soon. According to Rubner, the strong capital supply, which shaped January, is likely to abolish in mid -February. From February 16, he plans to position himself as a “tactical bear” and advises investors to take appropriate precautions. Rubner’s recommendation: Confidations of put options on the S&P 500. Specifically, he suggests two contracts – one with decay in March and another in June. These could help to secure the portfolio against potential losses if the dynamics in the market subsides, Marketwatch reflects the Goldman analyst’s assessment.
Editor finance.net
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