After a fine summer, investors are becoming more cautious. The horizon could emerge next year.
This summer, investors were deluded. They were hoping for a pause in the Fed's rate hike campaign. In a few minutes, at the end of last week, Jerome Powell, the boss of the powerful American Fed, ruined these hopes. He declared himself determined to use “all the tools at his disposal” to curb inflation, even if it means sacrificing growth. Markets immediately flip-flopped. Friday they regained tone. But, since this speech delivered at the end of the annual symposium of central bankers in Jackson Hole, the indices have lost most of the gains accumulated over the past two months. For investors, the land is mined. «The war in Ukraine continues to produce its harmful effects and they have to deal with still galloping inflation, sharply rising rates and a probable recession,” advances Vincent Chaigneau, director of research at Generali Investments.
The market is aware of these difficulties