Sumary of The American economy mid-2022:
- Teaser: An increasing number of economic indicators point to less growth than expected, including the United States, and the outlook is becoming more uncertain.
- THE changes that happen in the overall global economic picture currently happen fast and just within months.
- However, many investors have been pampered with rising prices every day, therefore, headwinds can quickly be considered as a prediction of doomsday.
- A particularly strong argument for ever-rising stock prices is rising corporate profits, which have continued rising and is precisely the argument for those investors who continue to contend for a positive US stock market.
- As mentioned, rising corporate profits are a good guarantor against a sour stock market, but profits must originate from somewhere, here, high macroeconomic growth rates naturally help.
- Concerning the fear of large drops in the stock markets, a good and simple litmus test is the lack of negative reactions among investors, so far.
- I consider China’s stock market as almost cheap, but some investors are not comfortable with Chinese stocks, so for these investors, a China allocation it is not an alternative.
- I believe that the European continent will continue to show the weakest economic growth and the stock market here will possibly disappoint optimistic investors, but on the other hand, I still see opportunities in the British stock market.