Although in the current corona crisis the quarterly reports relentlessly reveal the few winners and many losers of the pandemic, Thomas Böckelmann, portfolio manager at Euroswitch, believes that the obvious willingness of corporate leaders is decisive for the market reaction to spread confidence in the course of the ensuing analyses, to spread discussions instead of trusting the companies’ figures.
Some market participants tend to trust visions rather than a serious forecast by companies and a look at the quarterly report. Companies that disappointed even low expectations are rewarding investors for sticking to hopeful year-end forecasts in their comments on earnings.
The summit of European heads of state and government in Brussels, where the EU countries unanimously laid the foundations for a joint debt assumption, is looking hopeful. Although Thomas Böckelmann definitely considers this step to be sensible, he would still have liked more controls and more tangible concepts.
He expects the daily tension between hope and vision to continue in the coming weeks and volatility on the capital markets to remain high.
Source: Click here.