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Are Stock Markets Headed Toward New All-Time Highs?

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Are we about to see historic highs on the markets?

In my previous article, I predicted that the trade war would soon be over and that the markets would resume their growth. This is exactly what is happening. I believe that stocks have bottomed out, and I am positioning myself very bullishly ahead of the summer. Investors now have the opportunity to buy quality stocks at lower prices and use appropriate tools to make purchases at the right price. Maintaining calm during periods of market turbulence is of paramount importance.

The stock market always tends to grow in the long term and, thanks to the intervention of central banks and sometimes governments, manages to overcome moments of deep crisis. This was the case during significant events such as the attack on the Twin Towers in 2001, the Lehman Brothers crisis in 2008, and the COVID-19 pandemic in March 2020.

This dynamic is intrinsic to the history of the market itself. If you take a 20- or 30-year view of any major stock index, this trend is visible.

Therefore, although recent market declines may appear volatile or steep, they are not particularly serious in the context of the long-term trend, provided you have the time and ability to remain calm while waiting for the situation to stabilize.
USD Index-Daily Chart

These moments can present buying opportunities for high-quality technology stocks that were previously expensive.

Despite the uncertainty, there are select opportunities when considering companies that continue to innovate by reinvesting their profits in research. These companies tend to emerge stronger from periods of crisis, especially if they have little debt and a loyal customer base.

This is particularly relevant for companies developing artificial intelligence and cloud infrastructure, such as Nvidia (NASDAQ:), Google Alphabet (NASDAQ:), and Microsoft Corp (NASDAQ:). Although these companies are not immune to cyclical difficulties, they continue to innovate internally.

Some companies, while not distributing dividends to shareholders, reinvest all their profits in equity and technological research. Now we will examine what, in my opinion, is the best index to invest in for the summer. It is well known that one of the Trump administration’s main goals is to weaken the dollar, and this dynamic is indeed underway.

A weakening has significant effects on American companies, with varying consequences depending on the sector and their exposure to global markets.

It is well known that a devaluation of the dollar leads to improved export competitiveness. Companies that sell products abroad benefit from a weaker dollar because their goods become cheaper for foreign customers, increasing demand and profits. This phenomenon favors industries such as technology, aerospace, and agriculture.
Nasdaq Futures-Daily Chart

The indices we will focus on for the summer are the and the , US 500. Technology companies benefit from a weaker dollar thanks to exports. In general, as I often say, large American companies with strong international revenues tend to benefit from a weak dollar, as foreign revenues increase in value when converted into dollars.

It is well known that Nvidia, Microsoft, and Apple shares (NASDAQ:) have a significant influence on this index. A weak dollar can boost the profits of companies that generate a substantial portion of their revenues abroad, such as the companies mentioned above. As a result, the rise in these stocks could lead the indices to reach new all-time highs.

From a technical standpoint, chart analysis supports my purchases on the major US indices. Recent gains are in fact supported by above-average volumes, and prices remain above the 200-period moving average.

In addition, the latest news is positive. As expected, the trade war was short-lived, and the US and Europe have also reached an agreement on 10% tariffs.





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