Berlin The leading German index has gained a good 15 percent since the beginning of the year. But many shareholders are wondering how much longer this rally will last. After all, rising prices and interest rates, declining corporate profits and the Russian war of aggression in Ukraine continue to weigh heavily on companies.
“A very important warning sign is that the share prices of smaller companies on Wall Street have been lagging behind for many months,” explains stock market expert Ulf Sommer in the podcast. The price development of the so-called small caps is an important early indicator.
Although the S&P 500 has increased by around ten percent since the beginning of the year, this is due to individual large stocks that have driven the index. These included Apple, Microsoft, Alphabet and the chip manufacturer Nvidia. “But the rest is lagging behind,” says Sommer.
The index for the 2000 smaller US companies, the Russell 2000, has increased by just over one percent. A similar phenomenon can be observed in Germany with the Dax and MDax. “It would be unwise to be 100 percent invested now,” says Sommer.
In addition, Handelsblatt editor Judith Henke looks ahead to the upcoming OPEC meeting this weekend and explains how likely it is that further oil production cuts will be decided. Russia’s oil exports are likely to become the decisive issue of the conflict in Vienna.
More: First warning signs from the US stock exchanges
We have an exclusive subscription offer for you as a Handelsblatt Today listener: Test Handelsblatt Premium for four weeks for €1 and always stay informed about what’s moving the financial markets. More information is available here.
If you have any comments, questions, criticism or praise for this episode, please email us at: [email protected]
We can now be reached on WhatsApp, Signal and Telegram via the following number: 01523 – 80 99 427