Markets are always astonishing. On one side US market is facing inflation issues, Indian matrket under performed from 2 years but France and Germany markets are at thier life time high.
It’s a good omen but yet to see whether this rally will sustain in the upcoming days or it is again a new bull trap.
Stocks like Airbus Group and even overall france index FRA40 is breaking the ceiling.
Good to see global rebound in the tough times.
Germany Index
Observations:
- Recession probability of france is 50% as per Bloomberg report and GDP projection is mere 0.7% but markets are at all time high
- In similar lines, recession probability of Germany is 60% and GDP projection is in negative but markets are at life time high
- Ironically markets and economy will not be in sync all the time and stock market is leading indicator and recession is lagging indicator
- Never try to time the market until you believe that you have enough expertise in understanding the breadth and depth of market
