There has been no such euphoria on world stock exchanges for years
22:38
After the S & P500 index rose by more than a third during the year, analysts from the New York Stock Exchange are as optimistic as they have never been in the last 20 years, reports the Bloomberg news agency.
About 56 percent of all recommendations regarding companies from the main index of the US stock market are recommended to buy, which is the highest reading since 2002. As Bloomberg comments, this is another signal showing euphoria in the markets, after the indices have continued to rise in recent months and companies have shown very good results for the second quarter. Neither the spread of the Delta variant, the Chinese campaign against tech companies, nor the waning support from the Federal Reserve managed to deteriorate investor sentiment.
"The appetite for risky assets is not only driven by an extremely lenient monetary policy. Companies are expected to improve enormously in 2022," Todd Jablonski of Principal Global Asset Allocation commented.
In pink applause, analysts also see the prospects of companies from other regions of the world – recommendations for European and Asian stocks are the best in at least 10 years. Q2 2021's earnings season was one of the best ever, driven by a low base effect – the results are compared to the period of the worst pandemic disruptions in the global economy.
According to Ben Laidler, global market strategist at eToro, it still pays to play for the recovery of industries hit by the pandemic crisis. Restaurants, tour operators, airlines, and hotels are still posting an 85 percent drop in profits from pre-crisis ceilings, giving room for a further rebound. On the other hand, overly optimistic moods can also be a negative signal.
