- Home
- >
- Daily Accents
- >
- Markets in over-bought area, but euphoria continues, till when and where to look for Profit?
Markets in over-bought area, but euphoria continues, till when and where to look for Profit?
Rating:
Loading...The euphoria has captured the stock market since Donald Trump is in power, it seems he has no intention of ending. We have seen a very strong start of the year for most stock markets in the world, but there is an indicator that gives us a warning signal that the rally is over. The Relative Power Index (RSI) indicates that the main indices measuring the development of the world's top economies are in the overproduction zone.
According to 14 periodic RSI, the MSCI World Index is the highest at 88 points. Immediately after it, the US SP500 is at 85 points. Despite the strong growth of Nikkei 225 in recent months, he and MSCI Asia Pacific are at 78 and 79 points respectively. Emerging markets remain lower, at 74 points, mainly due to countries like Turkey that negatively affect the index.
Where to look for profits in that case?
There is one single market on the chart, which is lagging behind and it is European. The main reason for this slowdown was the weak inflation over the last year, the political turmoil in Spain and Germany and the strong euro. By the end of the week, we expect Germany to decide whether to form a government. If this is the case, we expect support for European markets, and in the long run, and with good economic data, stocks in the region will catch up on returns with other assets.
Source: Bloomberg Pro Terminal
Jr Trader Petar Milanov
Bloomberg: Equity Euphoria Grips the Entire World
Varchev Traders Read more:
If you think, we can improve that section,
please comment. Your oppinion is imortant for us.
