Mary Pieterse-Bloem, Professor of Financial Markets at Erasmus School of Economics and Global Head Fixed income in the Global Investment Center of the Private Bank of ABN AMRO, participates in the investment panel discussion on BNR Nieuwsradio, 27 November 2018. During this panel discussion, Mary Pieterse-Bloem discusses with the other panel members, John Beijer (Beursfoon) and Jeroen Blokland (Robeco), what investment decisions they have made recently and discusses what investors can expect from the coming months.
The most important question for investors during November is whether there will be an end of the year rally: will share prices go up during the last few months of the year? Traditionally, January and February are better months for investors. However, close to Sinterklaas, on 5 December, the shares prices tend to go down first, which is known as the 'Sinterklaas-dip'. After, towards the end of the year, the financial markets recover again and an increase of 5-6 percent is realised. This pattern can also be observed in practice: the financial markets have currently withessed a significant downturn, so there is enough room for a technical recovery, which will pave the way for an end of the year rally.
According to Professor Mary Pieterse-Bloem, the market has made very large movements during the past few months and, as a result, long term investments are still standing on the sidelines. When there will be positive news, for example about the current trade war between the United States of America and China, or when the G20-meeting at the end of the month will bring something really good, they might be seduced to get into the market again. Otherwise, January will form a new beginning.
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Click here to listen to the entire panel discussion on BNR Nieuwsradio, d.d. 27 November 2018