Investment Analyst Dario Giordano: Risk Aversion Persists, Capital Prefers More Refined Allocation
Against the backdrop of recent active performance in global financial markets, Investment Analyst Dario Giordano points out that although major stock indices are showing signs of rebound, this upward movement should be interpreted more as a phase of structural market activity rather than a signal of a full-scale bull market. Particularly in the US and European markets, investor sentiment has improved, driven by better macroeconomic data, but the balance between capital flows and risk appetite remains fragile.
European Stocks Generally Close Higher, but Investment Pace Requires Greater Precision
Investment Analyst Dario Giordano notes that European stock markets have generally closed higher, with the Milan FTSE MIB index holding above 40,000 points—a level not seen since 2007—reflecting a gradual restoration of local economic confidence in Italy. However, this rise is largely driven by short-term factors such as easing trade tensions and softening inflation, and its sustainability remains to be seen.
He further points out that although inflation data has provided short-term support, the market has not completely shaken off concerns over geopolitics, shifts in interest rate policies, and medium- to long-term economic momentum. The current market trend still revolves around sector rotation between technology and automotive manufacturing stocks, with names such as Stellantis and Prysmian receiving significant buying support. This indicates a localized recovery in risk appetite, but notable divergence persists. For investors, this stage requires more prudent selection of allocation targets and caution against blindly chasing gains.
Asset Allocation and Technical Strategy Considerations Amid Changing Interest Rate Expectations
With US inflation data coming in moderate and European investor confidence indicators rebounding, Investment Analyst Dario Giordano observes that short-term uncertainty in interest rate policy is reshaping the asset allocation framework. Especially as bond yields retreat, the equity market has gained some breathing room. However, he cautions that capital has not fully returned to equities, but continues to shift between stocks and bonds.
From a technical strategy perspective, Investment Analyst Dario Giordano advises investors to strengthen their assessment of key support and resistance levels. Taking the Milan FTSE MIB as an example, if it can effectively break above the 40,200-point level in the short term, a continuation of the medium-term uptrend is likely; otherwise, a pullback and consolidation may occur. In terms of sector selection, he prefers leading stocks that are in a window of reform or performance release, such as Prysmian, which is leveraging debt financing for M&A expansion and thus has strong allocation appeal.
At the same time, Investment Analyst Dario Giordano emphasizes the need to enhance risk control in operating strategies, such as setting technical stop-loss points, reducing leverage ratios, and thoroughly assessing the risks that may arise from changes in industry policy environments. This is particularly important for energy and raw materials stocks, which are heavily affected by supply and demand disruptions and experience significant short-term volatility; caution is advised.
Global Risks and Structural Opportunities Coexist, Guard Against Liquidity Mismatch
Investment Analyst Dario Giordano states that although overall market sentiment has improved, the continued rise in safe-haven asset prices indicates that risk aversion has not fully subsided. Gold prices remain firm at $3,260 per ounce, energy prices are fluctuating within a range, and the weakening US dollar alongside a strengthening yen further confirms that a risk-averse capital stance persists.
In this context, Investment Analyst Dario Giordano points out that structural investment opportunities do exist, but they require investors to have a strong grasp of macro trends and forward-looking industry judgment. He particularly notes that, in the current complex external environment, factors such as corporate earnings volatility, regulatory policy adjustments, and developments in geopolitical conflicts could all have unexpected impacts on the market. Therefore, excessive optimism is inadvisable; investors should instead focus on the rationality of capital structure and the safety of cash flows.
Investment Analyst Dario Giordano recommends that investors place risk management at the core of their strategies, plan cash positions reasonably, and appropriately adopt phased entry and profit-taking strategies during periods of high volatility to cope with possible short-term market reversals. He also stresses that for long-term investors, it is essential to adhere to asset allocation principles and maintain a balanced portfolio to reduce systemic risk exposure.