In addition to the level of inflation and the fight of central bankers with it, it is important to pay attention in the economic situation today to the US stocks where there is an increase, said Bandilov. “This may be due to restocking, but it may be a sign of muffled, pressed search. This will affect at a later stage of the economy. I mean what we all expect and what we all talk about - the recession we need to be ready for.”
“Other data coming from the market is related to unemployment in the largest economy - the US. The level’s starting to rise. At this stage, managers say that they are experiencing difficulties in hiring, which talks about some kind of demand, but we see a slight trend that the market is not performing as well as before - it weakens in terms of opening new jobs.”
Thirdly, we see a rather controversial picture in the reports, the guest added. “What makes sense is the relatively bad report of the banking sector. There is an impact here on the contraction of acquisitions and mergers, which are at an extremely low level. This is indicative of the speed at which the global economy is moving. There is no appetite for mergers and acquisitions.”
Last but not least, in the words of the interlocutor, attention should be paid to the results that account for the large technology companies that are below the ones we are used to, but “it is even more unpleasant that expectations and their forecasts are not very good.”
“This is not the first crisis, nor will it be the last and diversification is what can bring any investor as painlessly through it and give it a chance and opportunity to save resources to position itself in the next cycle.”
Regarding the real estate market Pavel Bandilov said that “the conditions that drive this market will deteriorate and will not get better.”
“The opposite wind will also blow there and there will be no island of stability, but it is very important what real estate we are talking about. Because what makes the impression is that, for example, industrial areas, storage areas and logistics, as well as during Covid, behave much better than housing and offices. Divergence is very important. Often, when one asset falls, another rises and this is the way to go through such a situation.”
Will chips be used, like energy sources, as an arsenal of geopolitical influence? What is the purpose of Russia’s verbal interventions and is it successfully influenced in the fuel market?
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