Markets: The party's over
- Apr 2
- 2 min read
Stock markets: a surge brought to a halt đź’Ľ US stock markets have recently experienced a period of euphoria: the S&P 500 is up +23% since the beginning of the year
Equity markets:
a slowed-down frenzy đź’Ľ
US stock markets have recently experienced a period of euphoria: the S&P 500 shows a gain of +23% since the beginning of the year, compared to +5.60% for the Euro Stoxx and -3.6% for the CAC 40 .
However, this momentum is now being held back by growing concern about the return of inflation in the United States, particularly in the housing sector .
Jerome Powell , chairman of the Federal Reserve, said: "The economy is sending no signals that we need to be in a hurry to cut rates...", causing a cold shower for the markets , which had hoped for rapid rate cuts.
United States vs Europe:
diverging trajectories 🌍
United States: Tension on interest rates đź“Š
The combination of Donald Trump's pro-growth measures and a robust US economy is pushing bond yields higher. The 10-year rate has crossed the 4.4% threshold , and some analysts fear it could rise to 5% .
Such an increase would be negative for stocks , as valuations become more difficult to justify in a high interest rate environment.
Europe: a more accommodating policy 🕊️
In contrast, the European Central Bank (ECB) is expected to maintain its accommodative policy , given the continent's economic fragility . European interest rates are likely to continue falling , offering a stark contrast to the US stance.
Our Evvest review đź§
In this context, market pullbacks can represent interesting opportunities for long-term investors.
Value strategies on US equities become relevant in a higher interest rate environment .
European stocks , with more attractive valuations and a more flexible monetary policy , may also become competitive again .
And what does that mean to me? 🤔
At Evvest , we reaffirm the importance of scheduled payments , particularly during periods of volatility.
This allows you to smooth out entry points , reduce exposure to bad timing, and take advantage of market downturns to strengthen your portfolio at advantageous prices.
In summary:
Even in a time of uncertainty, it is possible to position oneself intelligently .
A disciplined strategy allows you to benefit from long-term growth , while managing short-term turbulence.
Key reminder đź“ť
Staying invested in a diversified portfolio, adjusting exposure according to rates and taking advantage of temporary withdrawals to strengthen one's position are the best allies for building a resilient portfolio.
