Thursday, May 26, 2011
Stock Market: A New Opportunity?
The current situation reminds one of the May/June period last year. Then the stock market was also weak because the world economy was cooling. But in late summer 2010 the world economy got on track again and the stock market (S&P 500) gaines around 20%.
The chances are high that the world economy will re-accelerate soon. The interest rates are still very low and animate investing. The profits of companies are still climbing, because they get more efficient and benefit from the high growth of the global economy, especially in China and other emerging markets. The growth in these countries is fuelled by technical progress and the high backlog demand (wealth differences between the US/Europe). The dynamics of the world economy and the rising productivity of companies could restart the rally soon!