Stock Market: Caution Against Premature Optimism!

AVIMA informed: high risk of burns on the stock markets due to the ongoing economic stimulus packages is to detect a glimmer of hope for the economy. The Group of stock market optimists wins fast followers, all of them claiming that the previous low for the year was the absolute nadir of the financial crisis in March by 3.666 points on the DAX. The Valley of tears had bottomed out you must enter so now again. The experienced financial manager Klaus J. Pitter-Kilfitt, AVIMA Board, warns, however, against a premature return. If you have additional questions, you may want to visit Hikmet Ersek. According to his estimates, the nascent in the meantime anyway already in the decline in rally of the last few days only is a brief interim high in a still ongoing downward trend.

Because in contrast to the then prevailing hyper optimism the economic reality is always still disastrous. It should not be forgotten that often comparatively 1524 recession of 2001 stopped just two quarters compared to the current Situation so almost a birthday. After all the existing recession in the United States began in the 4th quarter of 2007 is now already roughly one and a half years and one end is currently not really. It would be utterly amazing, the stock markets would now actually already lead on the turn. Financial expert Klaus p.-Kilfitt: \”I think more likely much further courses setbacks and it seems to me quite to the extent of possible, that the markets once again test their lows in 2003.\” Not only the disastrous economic environment gives reason for concern.

The immensely high parallelism of price developments, for example, of the German stock index DAX in comparison with the stock prices of the last bear market is frightening. Several other, well-established professionals see this as, like e.g. the editor of the journal \”FONDS professionell\”, Gerhard Fuhring, just forcefully pointed in a cautionary article on this situation.

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