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 …
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 …
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. …
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 …
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. …
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 …
Last year was one of the most challenging in the financial markets since the last financial crisis. After a friendly start, a first correction already followed in February. The recovery from end of March until May led to a more optimistic investors-sentiment as this move was supported by good economic and company figures. In June …
Strategic Income Fund invests mainly into income-oriented assets in the US and international markets as well. Last year the big challenge was the FED policy of increasing interest rates. In February our investment strategy turned to risk off. We realized a little loss and stayed invested secure in the money market with the US-Dollars paying …
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 …