Expert warning to Istanbul Stock Market investors: “They will be left alone with stocks”
A prominent economist has stated that volatility in stock market indices will increase this year and advised young investors not to trade with all their savings: “They will be left alone with stocks whose prices are not increased.”
The stock market, which was the main investment tool for those who wanted to protect themselves against inflation last year, started 2023 on a volatile course. The stock market closed with a loss of 7 percent on Thursday last week and went up by 3.5 percent on Friday.
Experts emphasize that 2023 will be the year of volatility in the stock market. On the other hand, investors who want to protect the value of their assets continue to enter the stock market.
A prominent economist drew attention to last week’s volatility and addressed ‘young’ investors: ”There are definitely leveraged and overdraft transactions in this fluctuation. But the reason behind the rise is that there is a very serious group of young investors waiting for the shares to go up, or are on the stock market for that purpose, as the state likes. In other words, let’s say they are not older in terms of age, but not in terms of investors. They don’t have much experience. I’ve been through this period two, three times before. The masters of the market give the goods they have collected earlier to the end users during this period. Those end users are also left alone with stocks that have not increased in price for a long time. We are coming towards the same period again.”
Stating that volatility will increase before and after the election, he advised young investors not to use all their savings. He went on to say, ”Let me advise young investors in particular not to really be there with all their savings. At least, they should definitely reserve a capital that they can invest later. Because that day may come. They may also have a chance to buy very cheaply that day and recover their losses. There are many more different instruments such as futures contracts and options, and it is useful for them to educate themselves about using these instruments.”
Same person also shared following: “The index is in the 2.80s in dollar terms. I have a goal of 3.60-65 band this year. The question is how does this happen; either by increasing prices or by falling the exchange rate. Or a different situation may arise in Turkey. I don’t know about that, but I don’t expect much to go above the 3.60’s either. In other words, when we take 3 as a basis, a return of about 20 percent in dollar terms is not bad at all. But let me also underline that it will be very difficult to catch this.”
SOURCE: diken.com.tr/genc-borsa-yatirimcisina-uzman-uyarisi-hisse-senetleriyle-bas-basa-kalirlar/
Translated and edited.
