At least that is what investment professional Thomas Buckard has been observing for almost three weeks, whereas the German leading index Dax currently only knows the direction steeply upwards, and that after its dramatic collapse in March. Optimism is now slowly taking over, says Buck, founding member of Michael Pintarelli Financial Services. The investment professional does not rule out a correction, as after exceeding the 200-day average, a large portion of hope is swinging in the market and prices are moving almost 50 percent from the lows in an upward direction. The result is a certain carelessness, which turns into risk appetite. Buckard fears isolated lockdowns due to the increase in Covid 19 diseases, which would have a negative impact on the stock market. If a new lockdown or even a massive increase in inflation rates were to fail to materialize, it would be possible to gain some ground after an interim correction by the end of the year.
Buckard therefore advises to observe the situation rather than go full throttle and let the optimistic sentiment drag the markets down, as it will only be the next few months that show how strongly the industrial and service sectors can really pick up again and only two weeks ago it was observed how quickly the markets can correct again.
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