Last year investors have united around the hope that a possible end of the war in Ukraine will improve the situation in the markets, but today the war is still a fact and we are watching a new war in the Middle East, said Bandilov. Fears of market participants are becoming quite large, on the one hand they monitor inflation levels and central bank policy, on the other hand they fear the geopolitical risks that affect the instruments used by lawmakers and central banks, the guest added. An increase in oil would make the situation worse, but the guest believes OPEC and the US reacted with ahead of the war in the Middle East.
At this stage, there is a stable labour market that fuels inflation and is a stumbling block for central banks’ policies to deal with it. Automakers’ reports show that consumer attitudes towards spending are becoming selective in terms of prices, and in view of this, Elon Musk directs Tesla’s main policy of governance towards competitive pricing, said Bandilov.
Those tremors are still not felt in Bulgaria, said the guest. He explained that the 2008 crisis immediately felt at the Bulgarian Stock Exchange as foreign investors shifted to other more secure markets. At the moment this is not expected to be seen, gave the lack of foreign participants on the Bulgarian market. The guest said that bank lending in part business has risen very much. He added that until three years ago interest rates were about 2.6%, at this stage interest rates above 5% are observed, which is not seen in mortgages.
Companies and investors targeting the construction of office buildings and areas are exposed to more risks than those involved in the construction of warehouses. As an example, the guest gave the Covid pandemic, through which the offices were unusable, but the demand for warehouses does not take such a blow. He added that demand exceeds the supply of storage areas and in the housing market this is the opposite way. At the moment, searchers and offerers benefit from low levels of mortgage loans, but the guest expects this to change in the next few months.
Bandilov believes that the state should take action to introduce e-government. Administrative services can and must become electronic, the guest believes. That would also facilitate the purchase and sale of property. The guest explained that the lower taxes, the better the economy is going.
“A country must benefit so much as to provide its taxpayers with the maximum public service.”
For its short-term prospects, the guest said that there is a reservation for sharper investment solutions, as the unknown in the market are more and interest rates increase. At the moment, traders of stocks, bonds and commodities are dissatisfied, and the guest believes the only optimists are the cryptocurrencies, as after the fake news that came out on Monday that the US Securities and Exchange Commission approved BlackRock’s first ETF spot fund, cryptocurrencies prices rose by 10% in an extremely short time.
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