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Analysis: 2021 will be an optimistic year on the stock exchange markets
2021 will be an optimistic year on the stock exchange markets, say the analysts of the brokerage house XTB Romania, which considers that Bitcoin, the most visible virtual coin starts ‘ to seriously bite’ from the safe-heaven state of gold’.
‘The stock exchange markets are very vulnerable to a correction in Q1 2021, especially those symbols which gained much during the pandemics. For example, the shares in the digital area have grown much this year, such as Amazon, Zoom, even Microsoft. The transition from investing in the winners of the pandemics to investing in the losers of the pandemics will happen initially very slowly and at a certain moment very rapidly, and, at the same time, there will be a correction of shares. Moreover, I think that the attention of the investors will need to be focused on the public debt which will determine the way in which the investors treat shares, bonds, raw materials and other complex instruments,maybe even virtual currencies. At the same time, some time before the moment we get out of this dark period, end of spring or beginning of summer, it might not be a good period for the markets’ says Claudiu Cazacu, about the general evolution of the stock exchange markets.
In his turn, analyst Ovidiu Susan considers that 2021 will be an optimistic year.
‘As long as the central banks and the governments finance the economies as they do now, I think the markets go on growing. We will have different adjustments, but I don’t see any major corrections, as we had during the spring of this year. Even if there are worries on the part of some investors that, at present, we are experiencing a bubble, I think we should be worried when we see inflation, this being the first sign of alert. We are talking about inflation of almost 3-4% in the US which would force FED to increase the interests’ says Ovidiu Susan.
Similarly, according to Cazacu ‘ the market is extremely volatile on a short term,but Bitcoin and the next 2-3 currencies, the most liquid ones could have a good year. Possibly they will grow better than gold. But it will be seen’. We are talking about bubbles and prices considered to be ‘ inflated’, the XTB analyst considers that the sector of electric cars could be in this situation.
Making a comparison between the local stock exchange and the European one, Ovidiu Susan e expressed the opinion according to which certain companies on the local stock exchange would have the chance to perform better than DAX.‘I think that the local stock exchange has chances to overcome DAX next year, as performance. In an environment of very low interests, the rush for dividends will be extreme as it will make the capital to move where it finds yields.So much more on the basis of possibilities as MSCI to include Romania on the emerging markets’ said the XTB Romania analyst.
With more than 15 years of experience on the financial markets, XTB is, at present, one of the biggest brokers of derivatives in the world, and a complete company of investments listed on the Stock Exchange in Warsaw. With offices in over ten countries including the UK, Poland, Germany and France, XTB is also regulated by the most important supervision authorities in the world including FCA and KNF.