Situation at the start of today’s trading day

Christine Lagarde is to become the new head of the ECB – and that means a monetary policy for the ECB that is at least as ultra-lax in the coming years as it has been since Draghi took office! As IMF chief Lagarde has repeatedly pointed out how important and good zero interest rates are for the economy – overlooking the inevitable zombification of the economy through misallocations of capital. The slogan is always: “The main thing is not to have to endure pain in the short term, even if it has fatal consequences in the long term.

But the stock markets think it’s great – especially as Trump is now trying to install more “zero interest rate politicians” with the Fed. This is good news for the stock markets – the prospect of cheap money is apparently more important than the real economy, which is continuing to decline. But how big must the gap between markets and reality become before the house of cards collapses?

Jochen Stanzl sees good chances for the bulls – especially as expectations are once again very low before the US reporting season that starts next week (german):

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