October was another month of positive returns for both equities and the main fixed-income indices. This solid performance in the capital markets was mainly driven by an upturn in economic indicators, a better-than-expected earnings season, and another interest rate cut by the Federal Reserve.
The Spanish stock market is celebrating: its benchmark index, the IBEX 35, reached a new all-time high of 16,000 points on October 27.
The U.S. Federal Reserve has once again cut interest rates by 25 basis points, placing the range between 3.75% and 4%.
The Spanish Stock Exchange is experiencing a moment of euphoria. Eighteen years later, the IBEX 35 has reached all-time highs, surpassing 16,200 points and accumulating an increase of nearly 40% so far this year.
Value investing seems to be regaining followers. But, is this bet on value really materializing?
Although the markets seem to have relegated inflation to the background, its persistence in certain economies and the geopolitical factors that could reactivate it make it a risk that should not be overlooked.
RoadMAP: Monthly Update of Markets and Investment Strategy
In the third quarter, U.S. equities extended their post liberation day advance, especially in the case of small caps.
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.