Stock Market: A New Opportunity?

The stock market is stumbling in recent days. The reason: The world economy entered a soft spot again, a phase of weakening growth. Maybe this is a chance for long term investors. Maybe the weak stock market now generates very reasonable prices for entering.

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!