The euphoria continues on the stock markets.
The CAC 40 broke a 21-year-old record this Tuesday at 6 p.m.
At 6,927.03 points at the closing (+ 0.49% over the day), the flagship index of the Paris Bourse erases from the shelves the 9,922.33 points of September 4, 2000. During the meeting, it even came close to the record. absolute of 9,944 points established that day.
A spectacular post-Covid rebound as the CAC 40 fell to 3,632.06 points on March 16, 2020, just after the start of the pandemic.
Since the start of the year, the Parisian market has thus grown by 24.78%.
The reason for this spectacular rebound?
The accommodating policy of central banks, which has some fearing an Internet bubble similar to that of the year 2000.
"We live in an artificial paradise"
"Central banks have run the printing press and flooded the world with liquidity to deal with the Covid crisis, judges economist Marc Touati, president of the ACDEFI cabinet.
We live in a kind of artificial paradise.
Each month, since March 2020, around one hundred billion euros have been injected by the American Federal Reserve and the European Central Bank.
Problem, this policy "supercharged" the recovery, fueling a bubble with a decorrelation between the value of assets and the market valuation of companies, especially in the technology sector.
Especially since investors are flocking to equities because government bonds and their very low interest rates are less attractive.
So, are we heading towards a corrective movement or the bursting of a bubble similar to that of the year 2000?
“The bubble could have been gradually deflated after a phase of support for the economy lasting a few months at the start of the Covid crisis, underlines Marc Touati, author of
Reset, What New World for Tomorrow?
.
But we didn't and we are now in danger of having a crash.
"
This Wednesday, the US Federal Reserve is expected to initiate a shift in its monetary policy with asset repurchases that would drop from $ 120 billion per month to zero by mid-2022. The European Central Bank does not yet seem ready to follow suit, despite the rebounding inflation.
What further delay the bursting of a Covid bubble?