The summer session turned out to be extremely volatile with a two-sided trend. On the one hand, in July we saw a strong turnaround from the bad performance in June, with the financial markets showing a strong recovery. From the beginning of July until mid-August the main stock markets put up gains averaging more than 10% including a +18% of Nasdaq. Since mid-August, investors have had to face the harsh reality, and as a result stock markets have dropped nearly half of their gains. Investors are, once again, shaken by the fear of significant new restrictive measures by the [...]
The concerns which weighed on markets during the first half of the year were clearly evident in June. The attempt to stabilize market trends seen in May was not followed up and was accompanied by a new bearish phase that led U.S. indexes to hit new lows. On the European front, losses of around 10% were recorded, but they still remain above the lows recorded in March. This correction is mainly attributable to the tighter monetary policies put in place by the major Central Banks to combat the continuing rise in inflation. The slow return to normalcy after the re-emergence [...]
Still an inevitably complex month for the financial markets with inflation and all its causes (pandemic, war, sanctions, rising commodity costs, etc...) being the main issue. The remedy put in place by the major Central Banks, raising interest rates and tapering, is having negative effects as it is troublesome for consumers and businesses and therefore potentially demaging to economic growth dynamics. The sharp rise in inflation has led the major Central Banks to implement tighter monetary policies. The U.S. Central Bank (FED) raised interest rates by half a percentage point to a range of 0.75% and 1%. This is the [...]
At the end of the month, financial markets were heavily impacted by the outbreak of war in Ukraine. While January was negative due to tighter monetary policies, February was impacted by the Russian invasion of Ukraine and all indices closed negatively. The financial markets, frightened by this event, began to deal with the sanctions imposed on the invader. Rising commodity prices and new supply bottlenecks are a serious threat to global economic recovery, all at a time when Covid 19 was coming out of two years. The Fear of global escalation, the threat of nuclear war, and media coverage facilitated [...]
In the first month of the year we saw a wave of selles on all the global stock markets, with substantial drops in both the equity and bond markets. The prospect of tighter monetary policies, geopolitical uncertainties and high valuations pushed investors to take profits on a part of the profits recorded in the last year. This volatility has led to losses that have exceeded the levels observed during the most difficult phases of recent financial market history. Let's analyze the reasons for this nervousness. Concern about the rise in interest rates: in December, inflation in the United States [...]
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