The relevant barometers triggered alarm bells, but the stock markets are going their own way: recently they have even been able to rise. However, this development remains uncertain, according to Bernd Meyer from Berenberg.
Collapsing corporate profits, worrying key figures – the severe global recession seems to be unstoppable. And yet, despite all expectations, share prices are rising: the DAX has already gained almost 20 percent since its low in March 2020 and has re-entered the bull market. For systematic investment strategies that build on price momentum, the signs are now pointing to share purchases – especially as fear of missing the upward trend is slowly spreading. As Bernd Meyer, chief strategist at Berenberg, notes, however, the uncertainty remains enormous.
The majority of market observers assume that the markets will at least test the lows reached in mid-March again, and perhaps even fall below them. Meyer therefore urges caution and recommends that investors gradually increase their risky investments.
At the same time, however, Meyer sees light at the end of the tunnel: the return to normality is already in sight elsewhere, and the corona crisis has probably reached its peak in Europe. However, the USA still has a difficult road ahead of it, but here too there could be some signs of relief in the near future. Investors should therefore focus on a slow return.
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