The big question is whether there is any solid bottom below current prices. “I understand the logic of the markets, but I have concerns,” says De Jong. “A lot of investment strategists and investment banks hold the market and each other the same positive image and you have to be careful. And a lot of people got into stocks this year, driven by soaring prices and the return of nothing on savings. They are this year. really come with me, but what if things go against the grain for a while, will they sell upside down?
Gold and bitcoin
Typically gold, and in some ways Bitcoin, are a haven during times of crisis and economic uncertainty, but they behave abnormally in these corona times.
In March, bucking the trend, gold fell to less than $ 1,500 Troy ounce (31.1 grams) and then hitchhiked to over $ 2,000 in the summer. Gold currently costs $ 1,890.
The same story goes for the price of Bitcoin, which fell to $ 5,000 in March and then rose to $ 27,000 All time high. This broke the old record of $ 18,984 three years ago.
Corona has an impact on the economy and the financial markets and how they work. However, economist Han de Jong doesn’t think the economy will be fundamentally different. “At the beginning of the pandemic it was often said that we were going to de-globalize on a large scale. That always seemed unlikely to me.”
With share prices rising, investors appear optimistic about containing the pandemic and economic recovery. Economists share the expectation of a strong economic recovery with catch-up growth, recovery in profits for companies, and thus rising share prices.
Corona paralyzes the economy, but the entire economic and financial infrastructure is still intact, unlike, for example, in a war or a natural disaster. Effective vaccines restore normal society and business, and the economy quickly returns to normal, kind of a no-brakes restart, economists expect. Thanks to the stimulus packages from central banks and governments, growth is expected to receive an additional boost from economists, as does stock prices.