What is the future of the Stock market?
The Stock Exchange is a body that operates in the stock market, where securities transactions are carried out through continuous public auction mechanisms, and where stockbrokers can also carry out other intermediation activities.
The main functions of the stock market are the following:
It contributes to the growth of the capital market. Allow intermediaries and clients to trade securities and financial instruments.
It facilitates the flow of savings and investment in the stock market.
It carries out the primary placement of instruments in the stock and bond market.
It provides a secondary market for the transaction of financial instruments.
It promotes market regulation, favoring the free determination of prices and transparency in operations.
It provides services, systems, and infrastructures to the stock market.
What is the future of the stock market with the appearance of covid-19?
Millions of people lost their jobs or had to avail themselves of social assistance amid the confinements imposed in the world to reduce the spread of the covid-19 pandemic.
However, stock markets rebounded from their deep declines in March
The United States was the scene of the most surprising gains in 2020, with the Nasdaq technology index rising 42% and the S&P 500 index rising 15%.
But the UK’s FTSE 100 index, with its struggling oil companies, banks, and airlines – all of which were hit by the pandemic – did not suffer the same fate.
The future is precise. Nobody knows what it will be. It is also true that sometimes it is predictable.
The stock market may still have an upward journey in 2021, according to experts.
In the opinion of the expert team at Loomis Sayles (Natixis IM), equity valuations will remain above the historical average, given the support of monetary policymakers and ultra-low interest rates in developed countries.
“The global economic recovery will boost cyclical stocks that have a high correlation with growth, so we expect a broad and more balanced rally in the stock markets,” these analysts emphasize. In this way, Europe, Japan, and emerging markets, as expected, should participate in this rally together with the United States.
According to the team of Lombard Odier, a Swiss private bank, fiscal support should be more powerful during the recovery, which should cement the rise of the stock market.
We can say that, according to experts, the foundations of investments in the stock market held and that the foundations could have been laid so that the fact of using money to invest in the stock market is fascinating for 2021.