The stock markets are collapsing and there are many market experts who declare that a real disaster is imminent.
Let’s try to understand what is happening and in what goods the Italians turn to.
The stock market has been showing tremendous weakness lately, but this weakness could turn into a real crash. Many are waiting for a major crash in the stock market and it is important to understand their motivations.
Causes of collapse and safe assets
Speak JP Morgan For a real storm to come In the stock market but there are many reasons to believe that the stock market could crash soon.
First of all there Now it is very strong inflation that is able to destroy the economy. In fact, inflation is now close to 10% in almost all Western countries. These are untouched values for decades that you will soon be able to easily enter a recession economies around the world. With economies across the West and beyond approaching recession, it’s no wonder the stock market could crash. But first you see The goods that the Italians resort to Afraid of the stock market crash, we are trying to understand the real reasons for this expected crash.
Gold is not a good refuge
Central banks started Seriously increased rates. Historically, the increase in interest rates by central banks has always been accompanied by strong weakness in the stock exchanges. But this time there is a certain element to take into account. In fact, interest rates for central banks for far too many years have remained at zero. This led to a real bubble in the global stock markets. There is no absolute agreement on this point, but most likely the global stock exchanges, especially the American stock exchanges as well Severely exaggerated. This rise in rate could cause this bubble to burst and it could indeed be a major collapse.
The real goods of the haven
Investors are looking for a safe haven in traditional safe haven assets as well There are doubts about gold. Gold is usually the safe-haven asset par excellence, with high inflation and the risk of a stock market crash The yellow metal should be especially popular among investors. However, it is precisely the rate hike set by central banks that pays off The links between different countries of the world are particularly attractive. With particularly profitable bonds, it is very easy to get government bonds To compete strongly with gold. Thus, the real safe haven of choice for investors today is bonds. With rising interest rates, government bonds are becoming particularly attractive and even in demand.