Debt has risen sharply over the last 10 years, both in states, companies and private households. The higher level of debt has generally worsened the quality of borrowers and defaults will increase with rising interest rates. The bond markets are massively overpriced due to the various actions of central banks. This was understandable while there …
Current financial market reports make investors either euphoric or anxious. Where does the journey go from here? We don’t know! Last week the DAX Index lost 3,3 % and closed below the important 12.000 point support line. Except the US equity markets more or less all other indices performed negative this year. Although the move …
The judgment of the financial markets is obvious. The US economy will win the trade war. The US stock market rises in August 3% while Europe falls 3.5% and China 5%. The mining companies face a decline by 10%, signalling a future slowdown in commodity demand and thus a slowdown in economic growth. All of …
Strategic Income Fund with solid development 2018 YtD – 1,86 % 2017 +4,66% 2016 +2,63% Since the mid-February sell-signal we invested our liquidity into the money market with a focus on capital preservation and a modest income stream. This year stock markets have been very volatile and we saw mainly FAANG stocks (Facebook, …
Particular caution is required! The global economy continues to grow positively despite regional slowdowns. Rising inflation is within the target of 2%, so that the pragmatic normalization of monetary policy can continue. The unemployment rate is falling and in some places even full employment prevails. Corporate earnings for 2018 are expected to grow at a …
The investors seem to believe in the good deals that the US will achieve in the various negotiations. In May, the S & P500 rose + 2% while the SMI, ESTX50, NIKKEI 225, Hang Seng and IBOVESPA fell between -1% and -11%. The elections in Italy created additional uncertainty. The EUR lost almost 4% against …
We have got a sell signal on February 12th. Now 100 % of our assets are invested in the money market and therefore we are protected against price fluctuations. As our investments are in USD we get right now quite good interest rates. We were invested for almost the whole year 2017 and achieved after …
The financial sector is fighting in different areas right now. A huge wave of new regulations has to be implemented by January 2018. Promoted as protection for investors, it will result in a higher cost structures and in addition it will be a massive challenge for the operations of all financial services companies. At the …
«The Trend is your Friend» Equity markets started with a positive basic sentiment into 2017. Satisfying economic and company figures, which were mainly above expectation, and an interest environment, which gives nearly no alternatives to equities, are the basics for this positive trend. The US market led the trend during the first three months of …
Last week we saw some corrections. Equity prices came back from their partly historic highs and High Yield Bonds as well as Corporate Bonds showed also setbacks. The High Yield Corporate Bond Sector suffered 2,8 bn USD withdrawals in the week of March 8th. It looks like a sell-off. Meanwhile 7 bn USD were invested …