Yesterday, something historically unique happened. The price of WTI oil (May contract) fell below the 0 Dollar mark (the May future was at a low of -40 Dollar)! But how can something be worth less than 0? This has to do with the currently very exceptional conditions of the corona crisis (oil demand collapsed). It also has to do with the distress of mostly ignorant private investors who obviously did not realize the scope of their oil investment. But if the oil price does not turn around soon, many countries and oil producers will be in a tight spot. “Credit events” (in effect, insolvencies – causing bondholders and banks to write off their loans to oil companies)! In view of these circumstances, the stock markets are still holding up very well.
From a health point of view, the USA probably reacted too hesitantly to the corona crisis. But if there is one characteristic of the US, it is its ability to act quickly and flexibly in […]
How far does the Dax fall because of the coronavirus crisis? It will still take some time for the spoiled bulls to get used to this new market situation. Thinking back to the last few […]
In the wake of the Corona crisis, central banks around the world are printing money without end to prevent interbank markets from drying up. This will ensure that lending to companies and consumers can be […]