The global stock market may enter a deep correction
Senior Credit Suisse officials pointed out on Wednesday that global stock markets are undergoing consolidation. They believe there may be a deep correction next.
Ray Farris, Credit Suisse South Asia Investment Chief, stated that data has become more volatile as global growth momentum approaches its peak. He warned that the global stock market might enter a deeper correction. But Farris also said that after the stock market started this year strongly, the recent wave of corrections will bring great opportunities for investors.
According to reports, since the closing price on the last day of 2020, the US S&P 500 index has risen nearly 6%. The pan-European Stoxx 600 index has increased by 7.66%. Japan’s Nikkei 225 has advanced by 6.32%; Hong Kong’s Hang Seng Index expanded by 4.21%.
The financial services company affirmed that its focus has always been not to chase the stock market that has soared in the past few months.
Farris explained that in the 30 years ending in 2019, the stock market had an average correction of about 14%. However, the increase since the bottom was as high as 39%. He pointed out that the average correction rate of the S&P 500 index in 2020 was about 9%, but then it expanded by 29%.
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