Today's situation is very similar to the collapse of the bubble of bubbles, analysts with Wall Street believe.
Many shares of technological companies have lost more than half of their value, what to do investors who invest money in the shares of American companies?
The collapse of the US stock market, inflation has reached a maximum over 40 years, the Fed raises bets - such headlines began to appear more often in the media. They scare not only ordinary investors, but also large investment funds.
In the last speech, the head of the Fed stated that the regulator will raise interest rates as high as it will be necessary to stop the inflation growth that is now at the maximum for 40 years - this statement was frightened and the already decreasing market.
Professional market participants say that the bear market is coming.
The S&P 500 index is closed in the minus of the 7th week in a row-this is the longest period of fall since 2001, and the Dow Jones index has been reduced for the 8th week in a row-the longest period since 1932.
If we take into account historical data, then the bear market lasts about 12 months. The current decline is only 1/3 of this period. Therefore, he has great opportunities to continue the decline.
And if at first the shares were falling without profit, now the sales have reached the giants of the stock market.
The Deutsche Strategist does not imply a inevitable recession, but he nevertheless reduced his target indicator for the S&P 500 index - from 5250 to 4750 by the end of 2022.
The fears of investors of a relatively high recession intensified. Especially after the publication of the reports of large retailers (Walmart and Target), which showed the increase in costs and reduction of profit.
At the same time, Guggenheim analysts predict the collapse of the NASDAQ index by 75%, and S&P 500 - 45% of the maximums. In their opinion, this collapse will be similar to the collapse of the bubble of the dotcomes.
They explain their negative scenario by the fact that the Fed will continue to increase interest rates to contain inflation, despite that this (possibly) will lead to big problems in the stock markets.
In turn, Bank of America analysts noted that investors reduced the share of technological shares in their portfolios to a minimum for 16 years (by 23%). Because, growth shares are more sensitive to growth in bets.
Negative dynamics can end in October 2022, when the S&P 500 falls to the level of 3000. Therefore, I advise you to stock up on the cache, and upon reaching certain levels, to be purchased by promising shares in long -spokes.
After all, a decrease in quotations can be perceived as a collapse of shares and collapse of companies, or this period can be used as a time of opportunities (especially at the moment when the American dollar is extremely cheap).
For today, thanks for your attention!
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