The strategists and investors are carefully monitoring the movement and condition of the stock market. There are no signs of any risk. The equities around major markets are performing very impressively. All the strategists seriously agree that markets have now stabilized with no signs of bubbles. The stock and financial markets are affected by a series of geopolitical factors. Luckily many companies, especially from the sphere of technology, are performing impressively despite all odds. The investors are very optimistic and the signs of complacency are also visible.
The European stock market is showing signs of complete stability. It rose to the highest figure in the year. In the United States, the S&P 500 rose impressively in the last week. The smart investors are doing everything to evade a potential market downturn. Some of them are even switching to bond substitutes, utilities and other alternatives. Most of the sectors have made gains in the month of March. The utilities are appearing as a superior option to the investors as they offer better dividends and stability. The stock market experts are aware that many investors are attempting to play safe.
Many investors are proceeding with the perception that the new American leadership will focus on green energy plans. Any such move will produce positive results for the utilities. Recently, the S&P 500 utilities sector generated a dividend yield of 3.3%. After consumer staples, it was the second highest among S&P sectors. Nasdaq was slightly lifted by tech shares.
The global oil demand is now going up. Some governments are changing their climate goals, but this is not likely to affect global oil demand. In fact, the demand for oil is set to increase each year till 2026 according to experts. As new sectors are opening, more and more people are travelling for business. All this is generating excessive demand for fuel. Most of the surge in oil demand is likely to come from Asia and not from more advanced Western economies. As the international airports are operational, corporate activities are resuming and leisure travelling has also begun, the demand for aviation fuel is touching new heights. Investors are counting on commodities such as oil with an expectation that by the second half of 2021, the global economy will function at its normal pace.
In the international market, the cost of precious yellow metal is around $1,650 per ounce to $1,730 per ounce. According to experts, there can be a sharp rise in the price of yellow metal because oil prices are rising simultaneously. So, according to the bullion experts, it is now the ideal time to purchase gold and proceed forward with any investment plans.