According to the IMF, the global economy could grow more strongly than expected this year. In the US and China, the economy is likely to remain robust, although growth in the People’s Republic is likely to weaken. The experts are less optimistic about the German economy.
What has occurred since yesterday (17.3.2020)? Yesterday´s update started with the advantages of the Bloomberg terminals and also today we used the huge data base. Yesterday we reported on the ten days where the American equity index S&P500 had its largest losses on the same day. These ten days occurred in six different years: 1929, […]
Risky asset classes such as equities have recorded price increases at the beginning of the year. The core question for the investor is: Is this recovery after the sharp decline in Q4 sustainable or not?
The economic environment for the capital markets is subject to change as we speak. About one and a half years ago, the global economy shifted from recovery to boom, which was very advantageous for the markets. The features were strong, broadly based economic growth, low inflation, very supportive monetary policies, good earnings growth, and limited price fluctuations on the markets. We have now started leaving this best of all worlds (“Goldilocks scenario”) in more and more categories.
