Stock market, will the rally last or not? How to make money (even if the markets go down)
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Better caution, despite the rally
The latest stock market rebound was not enough to push performance, which remains heavily negative since the beginning of the year, on almost all asset classes, with the exception of energy and the greenback (see table). But the speed and vigor of the movement, capable of recovering 12.5% in Europe and 7.5% on Wall Street in just one month, justify a question: has the year-end rally really started? Or another false restart, after the summer one? There isn’t an easy answer, able to make the operators agree. And the advice of many analysts to build portfolios suitable for dealing with different scenarios.The Economy of the Corriere della Sera, with the help of some experts, has focused on four investment ideas: two are designed for those who do not trust the awakening of the Stock Exchanges. Two others aim to ride a possible continuation of the recent uptrend. Which does not seem like the classic rebound of the dead cat, but the beginning of a new chapter: the attempt of the markets to project themselves towards new equilibria, said Emilio Franco, CEO of Mediobanca sgr. The tsunami of inflation is finally breaking. The risk factors are numerous, but are already well reflected in the prices. And some headwinds are starting to change direction: for example China, which for 10 days seems to have softened its zero covid policy and has given further support to the real estate market. In Ukraine, diplomacy is moving. And perhaps we have reached the peak of inflation, even in the US. This would pave the way for the end of the most severe phase of the Federal Reserve’s monetary tightening.
Read also:
– Stocks, the dollar, high-yield bonds: how to invest at the end of 2022
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