We have already been telling you that investors usually enter the market latemany of them in the heat of the high returns of the markets, a complete mistake, and that Warren Buffett is stopping investing until he finds opportunities for his investment style.
But the falls in the month of December have made the Christmas rally disappear, but We investors are not used to there being so much bad news at the stock market level. at christmas. See how the main indices have performed this month.
The last 10 days have been terrible in the stock markets.
If we look at the Ibex 35, for example, we went from having only 12 stocks in the red (30% of the market), so far this year. to have 21 stocks in the red (60% of the market) Investors have become very nervous in most stocks as soon as the main US indices have not performed, they already know that when the US gets constipated, Europe gets pneumonia.
And that’s where America’s problems come from, see how Families in the US have had a great performance in the rises of the marketshave achieved their historical maximum wealth due to their investment in the stock market, mainly in indices and technological stocks in the US…Among them Nvidia, which is the favorite value for investors, all in the heat of the great profitability it has offered in the market .
It is individual investors who have entered the stock markets very strongly, encouraged by the profitability of large technology stocks.
And NVIDIA also supplies chips to large companies that are developing AI projects. See who your main clients are
But the market is expensive, no…The following… It is trading at 22 times sales. Every time the market has approached these exuberant valuation levels, they have ended up with strong corrections.
Will this be another correction or can it continue to rise?
Well, that will depend on several factors such as the economy, the drop in interest rates, inflation and Donald Trump, who is going to give a lot of volatility to the market with his statements or measures when he is president of the United States.
At the moment, individual investors have expressed their fears via market sentimentwhich has gone from being bullish to being bearish.
Too much noise in the stock markets to have a calm start to the year. But It’s not because of the companies.which continue to offer very good profit prospects, see the growth expected by the market consensus in 2025 and 2026 of the main indices.
It’s a valuation problem.
2025 will be a year of increase in volatility and see what opportunities the market offers us with the corrections and with the lagging values in the stock markets, let’s see which ones manage to overcome relevant resistances to catch upward trends.