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.