The pandemic is far from over. Nevertheless, according to the investment professional Ralph Rickassel of PMP Vermögensmanagement, an astonishing optimism is spreading in the capital markets. While there was a real panic and total sell-offs across all asset classes in March, the focus is now shifting in a different direction following the lifting of the lockdowns. This is probably also due to investors‘ fear of missing the right time to re-enter the market, says Rickassel.
He considers this optimism on the capital markets regarding the current state of the global economy to be highly questionable, as the fundamental economic data are literally in the doldrums and he is therefore unable to explain the positive mood and prices.
This similar deceptive euphoria reminds him of the big crashes of 1929 or the bursting of the dotcom bubble. What followed the optimism was another slump in the markets. The expert therefore advises investors to weigh up more and not to follow quantity or direction, because unfortunately the crisis is far from over. After all, turbulent times can still follow.
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