English to German Bus/Financial Investment / Securities

The S&P 500 has quickly reversed last week’s weakness and is already back close to record highs. The US is clearly outperforming Europe thanks to the strong technology sector performance. We see the S&P500’s resistance level at 4,260. From a technical perspective, we remain positive as long as the index trades above 4,160. We believe a break below that level would warn of a deeper correction to 4,100/4,060 as a ‘double top’ pattern seems to be on the cards.

Markets are treading a fine line, hoping for macroeconomic data that is neither “too hot, nor too cold”. They are torn between the risks of a more hawkish Fed and downwards earnings revisions. For now, the investment community has bought into the ‘transitory inflation’ argument and positioned itself for an ongoing ‘Goldilocks’ economy - one of decent growth with low inflation. This is the only scenario supportive for equity markets, and is our base case as well.

This allows us to expect modest but realistic high-single-digit total returns over the coming year, possibly with episodes of renewed volatility as we are guided, later this year, towards the next phase of US monetary policy. Valuation levels will remain challenged by rising yields, but we still see upside risk to earnings. Even being past its peak, global growth should remain above trend in the second part of this year and should support the recent positive earnings momentum. We maintain our preference for ***recovering assets***.


Kann mir jemand sagen, was hier mit "recovering assets" gemeint ist?