Rising inflation, and with it interest rates and the return of the pandemic, caused that November brought a solid sell-off, in virtually all stock indices in the world. Is this the end of the bull market or is it just a correction?
The strengthening dollar was not without significance for many indices on the stock exchange and the commodity market. This put additional pressure on equity markets, and investors are trying to estimate how much there is inflation in emerging markets in the US appreciation, the prospects of an interest rate hike by the Fed, and how much simply to escape from risk.
See also: CD PROJEKT shares should be carefully watched, and large companies from the WSE may start buying shares on a mass scale
Indices on important supports
On the one hand, the November sell-off in the equity markets looks threatening, and on the other hand, many indices started declines from their historic highs. This group also includes the indices of the Polish stock exchange, such as WIG, mWIG40 and WIG-banks, which set historical peaks in November.
At the moment, most of the indices have experienced declines, but their performance has reached important supports. This suggests that there is still only a correction on the market and the chance for a Santa Claus rally is considerable. Such conclusions can be reached after analyzing virtually all stock indices. I invite you to watch the latest stock market analysis in which we ponder how to invest in December 2021.