The Investment Bank said the papers are rising by short vendors forced to cover their positions, rather than positive fundamentals of companies.
The investment bank Goldman Sachs warned greater risks for lower quality actionsafter a recent climbing of the papers globally.
While the papers approach historical maximums and the fear of missing the rebound extends between investors, Louis Miller, a senior operator of the entity, called the latest profits cautiously, “especially in the lower quality segments of the market, where The shares are rising by short vendors forced to cover their positions, rather than for positive fundamentals of companies“
“Two weeks ago we pointed out that the contraction of the short positions facing the market could be an opportunity to down the short positions, and we believe that this moment is approaching,” Miller wrote.
“The areas to be taken into account are non -profitable technology, where in the past the profits were reduced as the performance was contracted, leaving room for the fall. The baskets composed of meme shares also remain at sellable levels,” he said.
ARGENTINA MERVAL ACTION MARKETS
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How do actions come on Wall Street?
On Tuesday, the Nasdaq 100 rose 1.5% to its first record from February and the S&P 500 rebounded 1.1%, thanks to the investors promoting the shares in all sectors. The advances were favored by the relief of tensions in the Middle East, the moderate positioning in the variable income in general and the balanced comments of the Federal Reserve about the perspectives of cuts of the interest rate.
Despite optimism, the risks to the market persist due to the deadlines that are coming in commercial negotiations, while the impact that tariffs could have on inflation, The gain margins of companies and world growth remains uncertain.
“Growth prospects are negative from July,” said Miller. “The high inflation figures until autumn could cause growth slowdown, which could mainly harm the market sectors of lower quality and more sensitive to growth.”
Source: Ambito
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