FINANCE | 17.03.2021
Alberto Matellán: “I don’t think central banks will abandon the stimulus scenarios they have been maintaining”
On a day when all eyes were on the Fed’s meeting, Alberto Matellán, Chief Economist at MAPFRE Inversión, centered his weekly analysis of the markets (on the Radio Intereconomía program A Media Session) on his prediction of an upward revision in US economic growth forecasts along with inflationary pressures.
Regarding European equity markets, where sentiment remains positive, he explained that “there’s optimism, because there’s money!” Agents and analysts are factoring in the improved economic outlook, especially in the US, along with sustained fiscal stimuli and the fact that the pandemic is relinquishing its grasp, with the belief that COVID-19 “won’t do any more damage to the economy,” and that “inflation will be transitory.” For those reasons, he explained, committing to stock markets is a natural response. However, he did clarify that “there may be problems in the longer-term,” but “for now the party continues.”
Waiting on the central banks
In addition to the Fed, the Bank of England and the Bank of Japan also have meetings this week, both important events for investors, because even though “they are likely to follow in the footsteps of the Fed and the ECB, if they don’t do that and instead take a bullish stance in view of high inflation or the growth outlook, that could trigger a wave of anxiety across the markets. I don’t think that will happen but we need to monitor that.”
A sea of opportunity for the ESG wave
There are opportunities, he explained, with the caveat that retail investors are seeing a “difficult dichotomy” between market euphoria and the reality of unemployment and a number of other indicators that serve to ground us where were we really are. Because of this, his advice to investors is that “we ought not to be led by either pessimism or euphoria, but rather we should seek guidance” from trusted analysts.