The bull is a symbol of the uptrend in the stock markets. But how sustainable is the current development?
(Photo: dpa)
New York, Frankfurt “Buy the dip” is the motto that has carried the stock markets for two years now. Freely translated: price setbacks are buying opportunities. This attitude not only allowed the stock exchanges to survive the corona pandemic, they also recovered quickly from the Ukraine war.
The German stock index Dax is back to the level it was before the Russian invasion of Ukraine. The recovery of the MSCI World index and the leading US index S&P 500 is even more pronounced.
At the same time, the burden on the stock markets is piling up: in addition to the terrible consequences for the Ukrainian population, the war is also having an impact on the global economy. Commodity prices are not only driving up consumer prices, they are also increasing costs for businesses, along with supply chain bottlenecks. A recession is looming, and at the same time the US Federal Reserve has initiated a turnaround in interest rates and has already increased interest rates for the first time.
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