Stock markets are currently out of control. What is the next? And why do experts see so much potential in these three German small caps, despite them also performing well recently?
“Why bond provisioning has been itemized with a 27.5 percent tax rate compared to savings accounts for several years is incomprehensible and is a bad sign for those who want to make provisions using stocks and funds,” wrote Robert Ottel in a press release. on Friday. Ottel is now president of the Stock Forum, i.e. the interest group of national listed companies that clearly want a strong Austrian capital market.
But, firstly, advocacy is not an evil in itself, and secondly, Ottel is right on this issue. The time has come for politicians to adopt precautionary measures. Sweden, which has long been under a social democratic regime, did this decades ago by, among other things, making the capital market more attractive.
Shaking head finance minister
Finance Minister Magnus Brunner (ÖVP) announced two weeks ago that he intended to reintroduce a ten-year holding period for investors during this legislative period, after which price gains will no longer be subject to capital gains tax . Green coalition partner concerns were addressed; it was now “increasingly incomprehensible why anyone could still be against it”, he told the Greens. Incomprehensible indeed.
There is some fear in the market that there is already euphoria at play, which is usually followed by disillusionment. In any case, the expectations placed on companies are high. The US S&P 500 index has already risen more since the beginning of the year than the Wall Street consensus expects for the end of the year, writes the Bloomberg news agency.
But true euphoria looks different. The lack of clarity about this year's interest rate increases from central banks continues to be a factor in the slowdown.
But which stocks are being considered attractive and promising by experts?