Should stock markets be considered on an offer currently?

Team Veye | 09-Oct-2022 stock markets

Whether it is a newcomer or an experienced investor, the eternal question on the minds of such players remains the same. What is the best time to buy (or sell) stocks?

Early last week, the stock markets rallied when the Fed called an emergency meeting on Monday, which was construed as some what relenting in the face of its earlier hawkish stance.

However, certain things happened simultaneously leading to this rally fizzling out early.

First, a more than expected, U.S. jobs report confirmed market assumptions that the Federal Reserve could implement steep interest rate hikes also. Benchmark U.S. Treasury yields also climbing augmented the view.

Further, the weakening of the Chinese manufacturing activity was followed by rise in Oil prices. The Oil has continued its upward trend after OPEC+ this week agreed to tighten global supply with a deal to cut production targets by 2 million barrels per day. This could further squeeze the supply in an already tight market.

However, the analysts are of the view that markets are offering an opportunity to investors to add on to their portfolios as expectations are that these could bottom out before the year end. Historical actions reveal that markets after such bottoming out, are often followed by powerful rallies.

Although the current market environment suggests to be somewhat defensive, it is not like pulling in the horns completely. There is a famous saying in the stock markets that when people deem it easy to make money here, it gives a jolt.

Whereas amateurs panic, the sharp brains hold their nerve and scout for good stocks at such times. In recent years, the markets gave a chance in 2009, again in 2020 and it might be giving yet another to astute investors. The stock markets still have strong tailwinds.

Disclaimer

Veye Pty Ltd(ABN 58 623 120 865), holds (AFSL No. 523157 ). All information provided by Veye Pty Ltd through its website, reports, and newsletters is general financial product advice only and should not be considered a personal recommendation to buy or sell any asset or security. Before acting on the advice, you should consider whether it’s appropriate to you, in light of your objectives, financial situation, or needs. You should look at the Product Disclosure Statement or other offer document associated with the security or product before making a decision on acquiring the security or product. You can refer to our Terms & Conditions and Financial Services Guide for more information. Any recommendation contained herein may not be suitable for all investors as it does not take into account your personal financial needs or investment objectives. Although Veye takes the utmost care to ensure accuracy of the content and that the information is gathered and processed from reliable resources, we strongly recommend that you seek professional advice from your financial advisor or stockbroker before making any investment decision based on any of our recommendations. All the information we share represents our views on the date of publishing as stocks are subject to real time changes and therefore may change without notice. Please remember that investments can go up and down and past performance is not necessarily indicative of future returns. We request our readers not to interpret our reports as direct recommendations. To the extent permitted by law, Veye Pty Ltd excludes all liability for any loss or damage arising from the use of this website and any information published (including any indirect or consequential loss, any data loss, or data corruption) (as mentioned on the website www.veye.com.au), and confirms that the employees and/or associates of Veye Pty Ltd do not hold positions in any of the financial products covered on the website on the date of publishing this report. Veye Pty Ltd hereby limits its liability, to the extent permitted by law to the resupply of services.

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