Private Clients Archive

The Specter of Inflation is Back

The stock markets are nervous, and the number and intensity of fluctuations are increasing. The latest sales trigger was the 4.2% rise in US consumer prices in April, the highest in 39 years. After decades of absence, inflation seems to be coming back and with it the expert debates about…

Stock markets: Sell in May and go away?

The global stock prices, and with them corporate valuations, have reached further record levels. Within the segments, the winners take turns again and again, sometimes it is large or small-cap technology stocks, then again cyclical industrial stocks or even retail and consumption. Good fundamental data from China, positive labor market…

A Rise in Interest Rates Signals Economic Optimism and Fuels Fear of Inflation

In the last article, we briefly discussed the important balance between stock and bond markets. In the meantime, capital market interest rates have become noticeably more expensive. One of the world’s most important seismographs, the yield on 10-year US treasuries, rose to about 1.6%. Ultimately, this is nothing more than…

2021: Growth

The Capital markets made a strong start to the new decade. A new US president spreads optimism and disposes of a relatively high potential to reshape internal and external politics. Numerous economic indicators such as industrial production, new orders and the number of foreign investments, signal a strong upswing for…

With optimism in the new year

One of the most turbulent years in modern history is coming to an end. The Pandemic has left huge scarves on many who have lost loved ones or struggled with their personal or professional livelihoods. While this applies to all facets of life, the lockdown’s impact on investors has been…

The Stock Markets Before and After the US Elections

It is just 3 weeks until the US Elections. Despite the devastating polls for the former “stock market darling“ Donald Trump, the markets continued to grow. The markets seem to be gaining acceptance that even though an election of Joe Biden might mean a retreat from previous deregulations and tax…

Stock Markets Develop Immunity Against Corona

It reads like a total contradiction: A more and more spreading pandemic with further drastic economic downturns, while the equity indices are targeting old or even new highs. Not really, when you look at the underlying market drivers: Huge support programs by the respective Governments for various parts of their…

Thoughts about the time after Corona

The world is in the grips of a virus, concerning policy, economy and socio-economics. It is a time full of uncertainty and contradictions where, under a state of emergency, elected representatives are ruling and taking measures based on scientific assumptions and the preeminence of health. But every crisis also constitutes…

What follows after the unusual 2019 stock market year?

2019 started turbulently. An inverted yield curve indicated a recession triggered by the US-Chinese trade war. In the United States, a severe dispute between the US Federal Reserve Bank (“FED”) and the US President raged about the right course in interest rate policy, and China’s economy showed signs of weakness.…

90 Years after the Big Stock Market Crash

Crash prophets who are drawing parallels with October 1929 are back in business. A dangerous mixture of excessive optimism over the strong rise of industrial production for several years, leveraged credit speculations, and the “Fear of Missing Out” (FOMA) pushed the Dow Jones in October 1929 at dizzying heights. First,…