ECB's Knot: stock market rally could be fuelled by recovery hopes

Reuters2021-01-31

AMSTERDAM, Jan 31 (Reuters) - The continuing rise of stock markets worldwide could be the result of growing hopes of economic recovery, and does not necessarily mean that prices are overly inflated, European Central Bank governing council member Klaas Knot said on Sunday.

"We definitely see high valuations," the Dutch central bank governor said in an interview on Dutch public television.

"Stock markets could be preempting the roll out of vaccines and the reopening of economies. We might be entering the roaring twenties."

But Knot warned individual investors against joining the recent rallies in companies such as GameStop .

"If this becomes a race between individuals and professional investors, it is clear who will suffer in the end: the small investor," he said.

(Reporting by Bart Meijer; Editing by Catherine Evans)

((Bart.Meijer@thomsonreuters.com; +31 20 504 5006; Reuters Messaging: bart.meijer@thomsonreuters.com))

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Comments

  • Janzant
    2021-02-01
    Janzant
    Good news
  • Kelzz
    2021-01-31
    Kelzz
    Buy buy buy 
  • SweetieLook
    2021-01-31
    SweetieLook
    buy more !! buy the dip !!
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