Investors have to be prepared for a choppy price trend in the new stock market year.
This is ensured by the rising inflation rates and thus the concern about rising interest rates.
The US Federal Reserve (Fed) was unexpectedly aggressive at its most recent meeting in December and is considering tightening monetary policy.
Even the European Central Bank (ECB) will not be able to afford to sit and watch the currency devaluation.
Investors will no longer be able to rely on the unconditional backing of the central banks. However, this scenario is anything but a negative shock. Because rising prices, cautious central banks and higher interest rates are also an indication that the economy is picking up again after the corona shock. This can also be seen in the American labor market, where companies are desperately looking for staff.
Should the central banks succeed in the transition from an extremely loose to a somewhat tighter monetary policy, that would be very positive for the future outlook on the stock market.
It would be bad if the pandemic with new virus variants forced the global economy to stand still again.
The prospects for the economy and stock markets are characterized by a number of uncertainties.
But that can also open up opportunities.
Price corrections can enable a cheap entry into the stock market.