What will happen to the stock market in the fall

World stock markets began the correction process. And the pandemic once again scared investors.

And today I would like to make a forecast about what to expect from the stock market in the fall.

Current situation

A new strain of coronavirus is actively applied in the world and there is a tangible increase in the number of patients. The consequence of this can be a significant slowdown in economic recovery.

Forecasts about the approach of the next pandemic wave cause tangible concern. Something similar was already on past waves:

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· Next comes the turn of the energy sector, which is drawn by industrial corporations.

The deterioration of the situation cannot but affect the stock market. Yes, the global dynamics of indexes can not be called frightening. However, in some papers, the fall in capitalization is already calculated tens of percent.

Almost everywhere there is a decline. Despite the fact that banks last week presented positive reports on the results of the second quarter, they failed to stop the sales.

We must not forget about the dynamics of the debt market. Ten-year American treasury bonds lose the profitability rate for several months to a row. Previously, it happened despite the growth of stock indices.

Simply put, in the debt market (and this is the most important component of the financial system), there is no confidence in the further growth of the economy. The same situation that took place at the start of 2020, provoked then a sharp decline.

What to expect

Of course, it is impossible to categorically say that in the fall, another exchange collapse should be expected. But the current correction must be taken into account.

At the consultation, discuss what is suitable for you, your risk profile and strategy to 18% per annum in dollars.

In any case, everything is directly dependent on the economy. If the expected decline will remain only in the forecasts, and the world will find effective means of dealing with the next Pandemic wave, then investors will have the opportunity to acquire the assets heavily in price.