empty
09.06.2020 05:08 PM
Stock market correction lies around the corner, signals stop in growth

This image is no longer relevant

The global stock market is affected by what is happening in the economy. Large-scale money injections, which are promoted by regulators in countries, make markets grow. The rise is so rapid that it has already managed to level all the losses that have occurred against the backdrop of the COVID-19 pandemic at the beginning of this spring. According to analysts, the market showed a record drop of $ 21 trillion. However, this fall was also managed to get rid of.

Nevertheless, experienced market participants have long hinted that there should be a significant turnaround on stock exchanges, followed by rapid growth, not limited by almost no external factors. The forecasts came true, but the question was how long this increase will continue because the bullish mood still persists.

In the meantime, the world's major stock indices managed to accomplish a grandiose act, which few believed in. All of which recovered to the level that was last recorded in February this year. Thus, the increase in the cost of securities averaged about 42%, which, without a doubt, is a very outstanding result. The last time such a significant increase was noted was in the crisis year of 2009 at the ACWI MSCI index.

However, experts suggest that very soon the market will feel the strongest volatility, which will force them downwards. But interest in risky assets is unlikely to disappear so soon.

In the meantime, the bulls have taken the lead in the market, for which there are several good reasons. Firstly, the stock indices of the United States of America have already strengthened quite well and crossed the line after which their rapid recovery began after a global fall in March. Secondly, the maximum rise is observed on the stock exchanges of the Asia-Pacific region for the past week. And thirdly, the securities of Europe, most likely, will be able to achieve the highest profit per month, which has not happened for more than ten years.

Of course, this is not the only support that the stock markets feel. So, the stimulus policy promoted by the majority of central banks of the states becomes a positive moment. The gradual removal of quarantine measures is not taking place at a very accelerated pace, but systematically. And the cherry on the cake should be considered a decrease in the number of applications submitted to the employment service of the United States of America, which neither the markets nor experts were prepared for, who assumed significant growth in preliminary forecasts. All this, taken together, cannot but cheer up the stock markets, which is happening today.

However, such a large number of positives cannot but alert the already rather dubious experts. Many believe that a situation similar to blowing a soap bubble is happening. Everyone knows what happens when the pressure gets too high. Some analysts warn about this explosion. The danger of correction is becoming stronger every day, especially against the backdrop of how investors act out news about higher rates of global economic recovery.

A disproportionately high jump in the value of securities in the last month of spring indicates that growth in the stock markets is largely due to speculative actions, while company earnings forecasts remain in the negative zone so far.

Thus, it becomes clear that the markets have gained too fast, which makes them too vulnerable. The slightest negative pressure from the outside can burst this huge bubble with great consequences for the participants. In the near future, you need to be ready for thorough corrections.

Maria Shablon,
Experto analítico de InstaForex
© 2007-2025
Seleccione el marco de tiempo
5
min
15
min
30
min
1
hora
4
horas
1
día
1
s.
Gana con los cambios en el valor de las criptomonedas con InstaForex.
Descarga MetaTrader 4 y abre tu primera operación.
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    UNIRSE AL CONCURSO

Recommended Stories

«El efecto Nvidia»: ¿aguantarán los mercados la última ola de presión?

Los resultados de Nvidia se publicarán el miércoles, los últimos de los ingresos de los "Magnificent 7". Donald Trump y los mercados europeos han vuelto al punto de partida

11:08 2025-05-26 UTC+2

La tecnología en auge: Snowflake y Alphabet brillan mientras cae el sector solar

Dow y S&P 500 terminaron la jornada sin cambios, mientras que el Nasdaq subió un 0,28%. Snowflake se disparó. Alphabet alcanzó su nivel más alto en casi tres meses

11:26 2025-05-23 UTC+2

Israel, Irán y el barril del miedo: el petróleo vuelve a subir

Durante la sesión asiática del miércoles por la mañana, el petróleo subió repentinamente un 1,5% gracias a las noticias procedentes de Oriente Medio. Las sospechas de un posible ataque

Natalia Andreeva 11:03 2025-05-21 UTC+2

El Bitcoin no teme los problemas de calificación crediticia de EE. UU. y sigue apuntando al alza. Los índices S&P 500 y Nasdaq100 también

La primera criptomoneda intenta mantener un nivel alto, aunque no siempre lo consigue. No obstante, el Bitcoin casi se ha consolidado en una posición de liderazgo, a pesar

Larisa Kolesnikova 11:03 2025-05-21 UTC+2

El dólar sin futuro: la venta masiva apenas comienza

Hasta hace poco, el dólar parecía intocable: el ancla mundial, el refugio monetario, la última palabra en confianza global. Pero hoy cada vez se escucha más otra retórica: sobrevaloración, agotamiento

Аlena Ivannitskaya 08:22 2025-05-20 UTC+2

Bitcoin: qué esperar esta semana. ¿Se mantendrá el récord con la subida hasta los $107 000?

A la primera criptomoneda le toca mantener sus posiciones, aunque a veces le resulta difícil. En este momento, el BTC ha salido adelante, por lo que la tarea de conservar

Larisa Kolesnikova 14:34 2025-05-19 UTC+2

El consumidor estadounidense pierde impulso: lo que dicen Target y Lowe's

En la próxima semana, Wall Street centrará su atención en los informes de las principales cadenas minoristas de EE. UU., que ayudarán a evaluar cómo afectan a la economía

12:39 2025-05-19 UTC+2

STOXX 600 alcanza nuevas cimas: ¿hacia dónde se dirige el crecimiento y qué les espera a los inversores?

Cisco sube tras la mejora de previsiones para el ejercicio fiscal UnitedHealth cae por un informe que menciona una investigación penal El índice europeo STOXX 600 apunta a su quinta

12:47 2025-05-16 UTC+2

Trump contra el dólar: por qué a la Casa Blanca le conviene una moneda débil

Algo extraño le está ocurriendo al dólar: se debilita, pero nadie lo reconoce oficialmente como una debilidad. El Departamento del Tesoro repite su mantra sobre una "moneda fuerte", Trump guarda

Аlena Ivannitskaya 13:23 2025-05-15 UTC+2

El Bitcoin y altcoins al alza, gracias a los datos de inflación y la tregua temporal entre EE. UU. y China

El miércoles 14 de mayo de 2025, el mercado de criptomonedas respiró aliviado tras la publicación de unos datos de inflación más moderados en EE. UU. de lo que esperaban

Natalia Andreeva 13:33 2025-05-14 UTC+2
¿No puede hablar ahora mismo?
Ingrese su pregunta en el chat.
Widget callback
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaForex anyway.

We are sorry for any inconvenience caused by this message.