The stock market rally has gone too far – says Wall Street expert Markus Koch. The mood was still extremely pessimistic in June – now the stock markets are pricing in that the latest inflation data will soon force the US Federal Reserve to turn interest rates down once more.
Markus Koch: Stock markets too optimistic regarding interest rates
However, this optimistic assessment is probably too optimistic, according to Markus Koch an interview with Mario Lochner. Because there is still a long way to go before the turnaround in interest rates, the market is now susceptible to setbacks, if only because the Fed has made it clear several times in the past few days that it will stick to its course.
Since the June low, the Nasdaq has gained more than 20%, and the S&P 500 has now passed the 4200 point mark, making up for half of the price losses from the high. How does it go from here? Some parameters in any case indicate that the air might get thinner for the stock markets in the next few days or weeks.
Markus Koch with his assessment of the current situation on the stock markets – it is currently more difficult than it has been for a long time, sic