analyst explains why the American market is growing

American stock indices rose to record highs on the back of good earnings reports from US corporations. Experts note that American shares have attracted investors' interest due to the issue of money, expectations of rising inflation and a small number of interesting objects for investment.

American stock indices are showing their highest values over the past few years. NASDAQ at its highest level since 2007, Dow Jones and S&P 500 since 2008. One of the reasons is the good reporting of American corporations, which, in conditions of weak demand, are improving their performance by cutting costs.

In a situation where there are few interesting investment opportunities on the market, American stock exchanges have good opportunities for further growth - both now and in the future. This is what Vladimir Rozhankovsky, director of the analytical department of the Nord Capital investment group, thinks.

“If you buy a security, it always beats your forecasts and pays you more dividends than in the previous quarter, and around, excuse me, there’s no place to invest,” says Vladimir Rozhankovsky. “It turns out that, for lack of anything better, it’s just all the money goes there through a funnel effect.”

“I expect that as long as American corporations report well, in principle American indices, unlike everything else, unlike treasuries, from debt markets, they should, in principle, feel good,” the analyst notes.

Investor interest in the American stock market is largely explained by the massive money issue that the Federal Reserve continues to carry out and expectations of rising inflation. This opinion is shared by the general director of the investment company Global Capital, Alexey Polenov.

“If we now recalculate the American index through the euro, we will see a much more modest picture than it appears now, expressed in dollars,” explains Alexey Polenov. “And, of course, we must understand that there are a lot of dollars, and this mass puts pressure on the stock market."

“It’s especially important to take into account that everyone expects high inflation, but it’s better to save yourself in assets that bring a positive flow of money – these are, first of all, shares,” explains the expert.

During trading on Tuesday, the Dow Jones index added 0.8% and stopped at 12,690 points. The intraday high was 12,708 points.

“All the money goes there through a funnel effect.”