The United States and other European nations are riding on a wave of economic development. There was a period of turmoil, but now investors are confident that the effects of the pandemic are over. It is the time for investors to shuffle their investment strategy, according to the investment experts. The economic leaders, banks are coming with bold policies in these testing times. If we talk on a global level, stocks have managed to attract a flood of liquidity. The developed economies are not worried about inflation. The world is looking at the US and China as the economies of these nations are completely stable. According to financial experts, it is the time to sensibly invest in stocks, particularly in metals, pharma, chemicals, IT, etc.
On Friday, the S&P 500 (.SPX) closed at a record high because factory data and the sales of new homes were adding weight to the economy. Moreover, the market is hopeful about strong earnings in the upcoming weeks. All the major wall street indexes are showing signs of improvement. The results are positive for the digital world. It is expected that earnings are likely to occupy the center stage. In recent weeks, most players from the tech world have made steady gains. According to experts, the earnings are expected to make an impressive jump of 33.9% in the first quarters.
The US factory activities and manufacturing PMI have also increased. The market has also received a boost as the demand of U.S. single-family homes has rebounded. It was good to see that all the 11 key S&P 500 sectors were making quick gains. According to experts, the US economy is likely to register its strongest growth in the last five decades. It is expected to grow by at least 6% in the coming years. The high growth outlook is encouraging the economy to run at full speed. With the vaccine roll-out, it has become easier for all sectors to function normally. A positive environment and stimulus packages are boosting demands. The signs of solid recovery in the United States and China, the second largest economy are filling hope in the hearts of investors
The investors of Asian markets are proceeding very cautiously. With careful calculation, it is easy for investors to navigate and slowly return to pre-pandemic life. The Shanghai Composite Index rose about 0.1 after adding +0.26%. Similarly, Hang Seng HSI made a gain of 0.9%. Stocks in Taiwan Y9999 also registered some growth. Investors are hopeful and confident as most of the companies in the S&P 500 are sharing quarterly results. The number of unemployed people has slowly gone down. The effect of stability was also visible on Spot gold that rose by 0.3%. The price was about $1,789.18 per ounce.