Stock market expert unveils upcoming stock market predictions
In a recent discussion, asset manager Johannes Hirsch of antea offers insights into the current state of the stock market today and the future outlook, particularly concerning AI stocks and interest rates.
Hirsch cautions investors to exercise caution when investing in AI stocks, stating that they may have "anticipated the best of all worlds." While the AI trend is still present, Hirsch suggests that it might be reaching a plateau, which could lead to corrections in the stock market today.
On a positive note, the American central bank chief, Jerome Powell, is expected to lower interest rates soon, a move that could boost stock markets. According to Hirsch, this could pave the way for positive developments in 2025.
Historically, stock markets experience double-digit corrections about twice a year, as Hirsch points out. However, he believes that if the central bank cuts interest rates, it could help mitigate such corrections in the stock market today.
Despite the current negative news, stock markets are on the rise, a trend Hirsch attributes to the market being ripe for a correction, with the "weak hands" having been washed out. Hirsch also emphasises that economic indicators may drop a bit, but they only concern growth rates, and there is still GDP growth.
Hirsch predicts that the Federal Reserve could potentially cut interest rates by up to 1.5 percentage points in the next quarter, given the room they have to do so now. He also asserts that economic figures may drop a bit, but this should not be cause for undue concern.
Investors are advised to avoid letting panic guide them too much. Hirsch encourages a measured approach, suggesting that the current rise in stock markets could potentially present a big surprise for stocks in September, given the recent negative news.
For those interested in a more detailed discussion on how investors should handle their stocks, the role of gold, and an aspect of the US presidential election not yet considered, Hirsch's complete "Smart Money" video is available for viewing. In this video, Hirsch provides valuable advice on navigating the stock market today in these uncertain times.
