Frankfurt The mood has brightened. This week, many investors are hoping, will see the last rate hikes of the cycle by the US Federal Reserve (Fed) and the European Central Bank (ECB). That would be good news for bond and stock holders, whose prices have suffered as interest rates soar.
Also, many believe the world is coming out of a major recession. Most recently, economists at the US banks Morgan Stanley and Goldman Sachs expressed optimism about the US economy. That would be the second piece of good news.
But how exactly is the situation to be assessed? How much confidence is already priced into the prices? What conclusions should investors draw for their portfolio?
Carsten Roemheld, capital market strategist at the fund company Fidelity International, sees several factors that date one have prevented recession but are losing importance. That’s why he advises caution.
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