Interest rates – commodities
Where is the journey heading?

We have been experiencing economic growth and expansion for years. Such movements have to be financed. Due to the extremely low interest rates, many companies have expanded their financing volume and are working with a high proportion of borrowed capital. Governments also took advantage of this extreme phase to finance their budgets. A debt burden …

Stock Market Year 2021 –
Value or Growth?

After the strong finale on the world’s stock markets last year, we see reality and euphoria facing each other. The enormous money supply of the central banks and the large money volumes of private investors are the connection between these opposite poles. As long as the money printing machine keeps running, prices can continue to …

Is the crisis over?

Looking back at the market development of April and May, one could believe that everything is fine. Markets have recovered the biggest part of the stock market correction. Many market participants roll their eyes when looking to this heavy recovery of stock markets as they are feeling every day the negative results of the Corona …

Quo vadis financial markets?

Since weeks we hear and read new numbers about the spreading of the virus SARS-CoV-2 on a daily basis and we have to live with the restrictions which come along with this exceptional situation. Financial markets showed a strong reaction to the pandemic end of February this year. This triggered a sharp price decline at …

Experiment Great Britain

On January 31st 2020 Great Britain left the European Union after 47 years of membership. Exactly at 11:00 p.m. local time the party started. The bells of Big Ben were prohibited as well as fireworks. Everywhere the Union Jack. People celebrating. The EU members were reduced from 28 to 27 countries. The deviation from EU …

Coronavirus – possible trigger for a crash?

2019 was a very successful year for stock market investments and helped to recover from the correction in 2018. Economic growth was shrinking and could be affected additionally from the outcome of the Coronavirus. The easy monetary police inspired equity markets during the past couple of months. Cheap money supports optimism of investors in an …

Strategic Income Fund – Update

This year was again a good year for equity investments and one should guess that investors are jubilating. The upword trend has not been a smooth one. S&P 500 Index showed corrections between 4 % and 7 %. Many investors are not or only partly invested. Only few investors participated from the whole YtD move. …

Market Monitor 4/2019

Economic growth is slowing, inflation is low and the labour market remains robust. The central banks remain unchanged in their loose monetary policy until the economic data demands new steps. The quarterly reports were mostly positive and exceeded the low expectations. Stock valuations are elevated in the US and slightly above the long-term average. They …

Market Monitor 3/2019

The US bond market shot up due to surprisingly poor economic data and led to an inverse US yield curve (long bond yields lower than short bonds). An inverse US interest rate curve has historically led to a recession in the US 15 months later. However, there were exceptions where a recession did not occur. …

Market Monitor 2/2019

China worries about the job market and wants to boost the economy with fiscal impulses. Europe is weakening more than expected in the wake of China and Italy is even falling into recession. The US is doing relatively well with a continued robust labour market and good consumer sentiment. The FED confirms that, taking into …