The Sahm Rule, an important recession indicator in the US, was triggered at the beginning of August – causing uncertainty on the markets. We explain what is behind the indicator and why everything could be different this time.
![The Sahm Rule: What is behind the recession indicator? The Sahm Rule: What is behind the recession indicator?](https://blog.en.erste-am.com/wp-content/uploads/2024/09/20240903_Sahm_rule_title_en-370x210-1725264854.png)
The Sahm Rule, an important recession indicator in the US, was triggered at the beginning of August – causing uncertainty on the markets. We explain what is behind the indicator and why everything could be different this time.
There was little to cheer about on the stock markets at the start of the week: there were significant price losses in both Europe and the USA and the Japanese Nikkei-225 recorded one of the biggest daily losses in its history. What were the reasons for Monday’s sharp sell-off, what impact could the latest events have on the markets and what will happen with the increasingly weak economy?
The topic of an impending recession has recently become quieter again – especially in the USA. A look at a few indicators helps to assess whether the spectre of recession has actually been banished (at least for the time being).
After a weak market year in 2022, 2023 is shaping up to be a pleasing conclusion for investors. Senior Fund Manager Christian Süttinger explains what remains of this year and what could be of particular interest on the markets in 2024 with the help of a few currently important charts.
Even though inflation has weakened recently, it remains an important topic for private individuals as well as for companies and the markets. What might happen next in terms of inflation and how long will the restrictive monetary policy stay with us? A look at some important financial charts will shed some light on this.
The stock markets are also usually a little quieter during the summer months. Many market participants take a break due to holidays and the general activity decreases. In any case, a look at some important charts indicates that no nasty surprises are to be expected during the holidays.
Can price stability, i.e. inflation of 2%, be achieved without a recession? The further decline in inflation in the US in June has raised expectations for this favourable scenario. However, a look in the rear-view mirror calls for caution. In the past, a central bank-induced decline in inflation has often been accompanied by a recession.
The feared recession has so far failed to materialise and inflation is also falling. Nevertheless, the risks remain on the downside. What could be in store for the markets in the second half of the year?
The German economy slipped into a technical recession in the first quarter. What does this mean for the largest economy in the euro zone and what is a technical recession?
The volatility of bonds has increased significantly and is clearly higher than that of equities. What are the reasons for this difference in development?