The first quarter of 2025 is approaching ending and stock evacuees at Wall Street to date missing returns compared to the rest of the world. For example, the S&P 500 has sheds 1.6% since the beginning of the year, while the European Stox 600 index rose by about 7%, Hang Sang rose 19% and even the local TA 35 index added about 2%.
And beyond the declines in the metrics, Wall Street trading has been suffering from abnormal volatility for a time when US trading days range from sharp declines of almost 4% to sharp increases of 2%.
Despite the volatility and missing performance, the biggest bodies in the US are precisely renowned for investment in the US stock market and believe that the current period produces interesting opportunities for investment.
“An extreme decline signifies an entry opportunity”
on-UBS For example, the volatility in Wall Street, which was recorded in March, is expected to continue in April, but still recommend staying invested in the stock market. “We are watching a period of additional volatility in the April stock market. In the coming weeks, we will see the S&P 500, which reached a low of 10%-as a potential buying opportunity,” points out Ulika Hoffman-Bordechardi, the main investment manager at UBS. He also emphasized that “investors should ensure that their cases are well diverse with properties such as quality bonds, gold and alternatives to effectively navigate the current challenges.”
At the same time, analysts in the investment giant Morgan Stanley It is now believed that the forecast for the Technology Shares Group, “The Wonderful”, improves, a trend that may return investors to the US market after the repair. According to them, the strengthening of the shares may stop the global investment round, renewing Wall Street’s transport.
onBank of America It is estimated that volatility in the US stock market has created an opportunity for investors, and that US stocks have not said the last word: “We recognize a significant resemblance between the last declines in the US stock markets and December 2018, followed by a quick recovery. Our fund managers shows that investors have recently reduced US stock allocation to the low level.
“However, we believe that historical, such an extreme decrease in exposure to the US is indicative of an entry opportunity. High volatility is typical of periods of lids, but from past experience, such sharp declines often create attractive purchase opportunities.
“Our main recommendation is to prepare for investment opportunities in the US market, with emphasis on the large technology shares, mainly through protection through appropriate options,” the US Bank noted.
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