Markets continue to climb to new highs… but this euphoria hides an uncomfortable secret: every day, more voices warn that we are playing with fire. Big tech companies, driven by the phenomenon of artificial intelligence, have reached valuations that many already classify as bubble territory. And when big investors start to raise their eyebrows, the rest of the market becomes tense.
Fear is out there. You only have to look at sentiment indicators to see it: panic is setting in among investors, and when it does, it often triggers a domino effect of selling that can hit faster than expected.
However, the most disturbing thing is that this stock market terror is not benefiting traditional safe havens. Because if we look at the gold and Bitcoin charts so far this year… the story changes. Gold is once again shining as the king of safe havens, while Bitcoin seems to have become paralysed in a long sideways range.
But if we zoom in on the short term, things get even murkier: gold and Bitcoin are falling harder than indices that are supposedly overpriced, such as the S&P 500 or the NASDAQ 100. Something doesn’t add up… and the market knows it.
Gold, for example, had very clear support in its previous rally: China. For years, it has been gobbling up gold, probably more than it admits, to become one of the world’s largest buyers. But now suspicions are arising: according to the Financial Times, the Asian giant could be hiding massive purchases to strengthen its currency against the dollar. If this is confirmed, perhaps gold’s biggest driver is running out of fuel.
To better understand this puzzle, we asked the experts directly: is this a healthy correction or the beginning of a more severe decline?
Jorge del Canto, financial advisor, analyses whether the Artificial Intelligence market is really overheated… and whether this adjustment is just the beginning.
For his part, Javier Alfayate, analyst at Grupo Link, reveals whether the big tech companies are still holding their own… and whether Bitcoin is preparing for a decisive turnaround. He also gives his view on the leading cryptocurrency: are the falls a death trap… or an opportunity that won’t be seen again for years?
And for gold, we seek answers in the technical analysis of José Antonio González, Investment Strategies analyst: are we facing a simple correction… or is the precious metal losing its crown?
Because when the market appears calm on the surface… it is often just when the next storm is brewing.
Source: Yahoo!Finanzas
