Q4 Outlook: Further Caution is Advised

Even though the short-term recoveries on the stock markets may suggest it – the markets remain volatile, and, in our view, investors’ portfolios should be defensive until further notice.   In view of increasing inflationary pressure, the central banks (especially the ones in the USA and Canada) are expected to…

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…

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…