The portfolio manager Andreas Beck has been buying shares once more since Friday – but why? For Andreas Beck it is a sign that companies are also being sold that are not really affected by the crisis – so many investors are obviously forced to divest themselves. “In a crisis, the king is the one who has liquidity – but he must also use it” – says Andreas Beck.
Why should stocks go up? Andreas Beck on the reasons
But typically, rising interest rates are bad for stocks — the “monetary climate change’ has put the stock markets under a lot of pressure since the beginning of the year. The strong dollar and rising yields are poison for the stock markets – but both the dollar and yields are rising due to the Fed’s expectation that interest rates will rise by more than 4% and that the US Federal Reserve will not lower interest rates in 2023 either (see above). today dhe statement by Fed member Mester). With bond yields rising, bonds are once once more a viable alternative to stocks – the mantra “there is no alternative” (TINA) is no longer valid.
Currently, the Fed has only one goal as the pacemaker for the markets: bringing inflation down. So it’s driving a rate-hike cycle faster than ever in US history. Can that go well given the massive debt? Scott Minerd von Oppenheimer says: „The end of Fed tightening will come when something breaks, and from where I sit cracks are forming“.
Is the Fed correct?
According to Andreas Beck, the factor that should force the Fed to change course is the US labor market. As a result, today’s US labor market data should once once more attract particular attention.
But is the Fed correct? Andreas Beck: “The problem of inflation no longer exists in the USA”. And Beck continues: “The Fed will be able to be celebrated in three months”! What makes the portfolio expert so optimistic that he is now buying shares for 15 million euros once more in the middle of the crisis? In the following interview, the mathematician explains why he believes this is the turning point in the crisis and why inflation will soon no longer be a problem.
