The representative of the international agency Moody’s, which monitors the state of economies in different countries, said that investors should wait for the fall in the value of major market assets by 10-20%. Last year, the US cut the rate to almost zero to revive the economy and consumer demand. However, demand and inflation in the US are now outstripping forecasts, which could force the Fed to raise loan rates and reduce bond redemptions in the market to contain the rise in prices. And after that the quotes will inevitably collapse by 10-20%. The chief economist of Moody’s Analytics noted in his interview that the list of risky assets today includes both stocks and bonds, as well as commodities and cryptocurrencies. At the same time, experts do not expect a quick recovery of quotations on the stock market, because the value of shares is already at its maximums. It is estimated that it may take a year to cover losses after a market crash. The Dow Jones posted its largest weekly drop since October 2020, shedding 3.5%. The S&P 500 experienced its worst week since the end of February, falling more than 2%. The Nasdaq hi-tech index also dipped, but it remains just 1.3% below its all-time high.
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