Latest news:

Liquidity, “big tech” results help boost the stock market

Oct 28, 2021

Redacción Mapfre

Redacción Mapfre

In the midst of corporate results season, stock exchanges in the U.S. and elsewhere continue their upward trend and are posting gains day after day. But what is behind these increases? According to Ismael García Puente, investment manager and fund selector at MGP, the fundamental factor lies in the liquidity level, since “there is a correlation between the cash injections from central banks and the markets’ behavior in the following weeks.” However, he adds that these increases are also being supported by the presentation of results, especially in the “big tech” sector, in which “investors are already seeing profits close to 30%.”

Amid fears that central banks will start putting the brakes on stimulus policies, analysts acknowledge that there is no reason to be alarmist. “We must bear in mind that it's not about putting out the fire, but rather not continuing to feed the flames,” the expert says. With U.S. fixed income heading for minimum levels since 2009, he adds, investors have no alternatives, and part of last year’s savings continues to move into the stock markets."

The macroeconomic figures, together with the possible effects of comparison with 2022, could be lowering investors’ confidence, something that, in his opinion, is far from reality. "Data like the PMI, while worse than expected, are well above last year." According to Ismael García Puente, the issues we should be concerned with have more to do with raw materials, where “supply is unable to respond to current levels of demand.”

How to invest with the stock market at maximums?

How to invest with the stock market at maximums?

We are facing a high price scenario, in which questions for investors arise: Should one enter a market that is already “expensive,” or wait? Should you hold your investments, or is it time to sell? MAPFRE experts explain that being in a moment when stock markets are at record highs should not deter investment if we have a long-term outlook—the most suitable for retail investors—and good diversification.

Fed Highlights “High Prices” in Equities: Are We Facing a Bubble?

Fed Highlights “High Prices” in Equities: Are We Facing a Bubble?

The U.S. Federal Reserve has dominated much of the economic and financial discussion in recent weeks, largely due to the debate over possible rate cuts, which were confirmed last week. On Tuesday, Chair Jerome Powell again drew attention by referring in a speech to the “fairly high” prices in U.S. equities. With Wall Street at historic highs, the question arises whether we are dealing with an equity bubble.

Share This