On February 13, Mary Pieterse-Bloem, Professor of Financial Markets at Erasmus School of Economics, was a participant of the BNR Nieuwsradio investor panel. Here, she and Jean-Paul van Oudheusden discussed the rising AEX and the global real estate market.
AEX
Since inflation is coming along nicely, the central bank sees opportunities to lower interest rates. This paints a picture of a favourable investment environment. The AEX has risen considerably in recent times, but now the question is where does the road to the top end? Timing the market is a difficult issue, according to Pieterse-Bloem. There is an entry and exit point, both of which are important for good results. The AEX's worldwide jubilant mood lasted quite a while this time. Usually the AEX collapses a little faster, but that only happened after a week this time. It is important to see in this situation that there is Fear Of Missing Out (FOMO) regarding the Tech stocks. Everyone wants to get their share, which is also visible in Dutch companies. Lower interest rates are mainly good for growth stocks, of which tech stocks are par excellence. Where many people previously had a hard recession in their scenario set of expectations of the market, it seems more likely to be a small recession. According to Pieterse-Bloem, as an investor it is therefore best to diversify, preferably across the world and in different types of products, so that there is less sensitivity to volatility.
Real estate market
Uncertainty about real estate markets is increasing all over the world. The danger with the uncertainty lies in spreading information about the position of banks, which can cause a bank sprint. According to Pieterse-Bloem, bank balance sheets are in a lot better shape compared to 2008. Banks have also made decent profits in the past year, which certainly helps.
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You listen to the full podcast from BNR Nieuwsradio, 13 February 2024, here.
