Illusions that you believe that the stock market will rise

The stock market will go down again in my opinion.

For a few days the stock market has risen a little, rather it has stopped falling and has recovered a certain level. But pretending that this means that the stock market has stopped falling and a new bullish rally is going to be seen is naïve.

We are experiencing the end of economic stimulus and the end of doping in the stock market, but we have not yet entered the expected recession. Interest rates are going up. And consumption begins to slow down.

As an example. The NASDAQ 100 index reached a maximum of 16,500 points in December 2021. Today it is around 11,400 points. But it is that in April 2019 it was at 7750 points.

Today the NASDAQ 100 has a ratio of 23.07 and a dividend of 0.99%. What does this mean? Well, I expect the results of the companies to worsen for two reasons, the first is the reduction in consumption due to the rise in interest rates that will make buying in installments more expensive for the consumer, and the second is the rise in interest rates it will cause the financing of companies to be more expensive, with which the income statement of companies will suffer. And highly indebted companies could go into losses.

It will be from now on when ordinary citizens begin to notice the rise in interest rates that companies will notice the reduction in consumption.

This is my opinion. And I admit to being a small stock investor who has bearish positions right now in the stock market.

Today, construction data has been published in Canada. The published data on construction permits (+ 6'1%) and new housing constructions Read more

The commercial activity of the euro zone barely grew in October because demand declined, according to a survey published on Read more

Today, construction data has been published in the US. Works permit data is above expectations with 1,461M. And the data Read more

The exchanges continue to mark historical highs as rumors are heard about the trade agreement with China, but the reality Read more

A few years ago Boeing was the most important aeronautical company on the planet. being the most important civil constructor Read more

Phase 1 of the trade agreement with China has already been signed

Phase 1 of the trade agreement with China has already been signed. The trade agreement with China has already been Read more

The real reason why the Mobile World Congress has been canceled.

The real reason why the Mobile World Congress has been canceled. A few days ago the Mobile World Congress (MWC) Read more

The coronavirus is the beginning of the new crisis.

The coronavirus is the beginning of the new crisis. These days only the coronavirus matters, but from the economic centers Read more

The coronavirus disaster

The coronavirus disaster. Fear of disease COVID-19 has caused a recession in the world economy, but this fear is unwarranted. Read more

Interventional Europe takes pseudo-fascist measures with the excuse of the coronavirus

Interventional Europe takes pseudo-fascist measures with the excuse of the coronavirus. Interventional Europe, which believes that it is necessary to Read more

Leave a Reply