US Elections, Inflation, and Geopolitics Remain Critical Market Factors, Says Krasimir Atanasov
The significant market volatility observed last week cannot be deemed fully resolved, and there are currently no indicators to suggest otherwise. This was the assertion made by Krasimir Atanasov, a financial analyst, during the “Business Start” program on Bloomberg TV Bulgaria.
“In most cases, these market incidents unfold like major earthquakes—with aftershocks. I do not expect everything to suddenly calm down, especially considering the various factors at play, including the economy, the US elections, inflation, and geopolitical issues,” commented Atanasov.
According to him, the rapid pace at which these events have transpired means that market participants cannot have fully adjusted to them. “If volatility dissipates quickly, that’s one scenario, but at this stage, the conditions appear to suggest otherwise,” Atanasov noted.
He also addressed the recent sell-offs of Apple stocks, indicating that the significant cash reserves held by Warren Buffett’s Berkshire Hathaway following the sale of substantial positions in Apple signal a lack of confidence in stock prices at this time.
“The primary reason Buffett is selling Apple is that the company’s stocks are significantly overvalued… In any case, the fact that Buffett is not investing but is instead accumulating cash should be taken as a warning from the markets,” the guest stated on the program.
“Buffett is an investor who looks at a longer-term horizon. From this perspective, he has long stated that he finds it challenging to identify companies in which to invest… It is not easy for him to find a company that can absorb even a small portion of that cash. His decision to wait is not surprising,” concluded the financial analyst.
How the slowing economy and expectations regarding interest rates in the US are affecting the markets is further discussed in the video on Bloomberg TV Bulgaria.
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