After months of anticipating an imminent downturn, commentators now struggle to find concerning elements in the scenario, as the stock market continues its positive trend, with major indices reaching historic highs. But as Sun Tzu said in The Art of War, “The greatest danger is that which cannot be seen.”
The market is facing two major bets: the first concerns the increasingly widespread theme of artificial intelligence, with companies in the sector achieving enormous capitalizations and transforming global stock market dynamics; the second concerns the market’s expectation that interest rates will decline over the year, awaiting monetary policy decisions from Central Banks.
In short, the economic landscape presents challenges and uncertainties, including risks stemming from a potential increase in inflation, geopolitical tensions, and the numerous elections worldwide expected in 2024, which will significantly influence financial markets.
Therefore, it is essential to carefully consider, in investment management, possible tail events and risk factors for the economy, participating in the market with greater prudence and selectivity.
Discover why! Watch the analysis conducted by Lorenzo Fuscà, Head of Wealth Management, and Stefania Cardone, Investment Advisory at Banca Profilo.
