Pavel Bandilov in “The Day with V. Dremdzhiev’, 15.2.18, TV+ and TV1
American inflation remained unchanged in January at 2.1% compared to the previous year. Base inflation did not change and remained at a level of 1.8%. Despite the renewed inflation fears that lowered the markets in the previous sessions, this week nothing seems to stop the stock market. Interest rates on 10-year-old U.S. bonds continue to conquer new highs, but with them stock prices.
All this says that the decline we observed on the global capital market is a correction that has been expected for a long time, and which enables the indices to take a breath of air, investors to collect profits and be able to enter positions at better prices.
This does not mean that the prices of assets marketable on capital markets are at attractive values, rather we are in the last part of the cycle and the market is approaching its euphoria phase, where it is willing to ignore a number of risks and to conquer new peaks. The last mile to the top is the sweetest, but the riskiest.
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