What goes up must come down, and the Spanish stock market is no exception. After an influx of capital into the Ibex, it's safe to say that a long period of low market cap has passed even though recommendations for several major companies have changed and some of its top companies have shaved value.
For example, analysts are saying buy Telefónica and Inditex and sell Santander, Iberdrola and BBVA. An inversion like this shows that the market is expensive. Investors will likely start to sell their shares and look for gains elsewhere. On a seventeen-year business cycle, this kind of upswing will not happen for a while. Unfortunately, these factors will cause a lot of investment capital to leave the markets at a time when it is needed most.
