No question: the stock markets are currently experiencing a crash! The Dax falls by -40% in less than four weeks, the US indices about -30%. One thing is clear: the western world is facing a recession (so today the New York Empire State Index with the biggest possible decline ever, and Goldman Sachs expects the 2nd quarter of US GDP to be -5%! The problem for the stock markets is now twofold: the Fed’s emergency rate cut once again cannot stop the sell-off, and secondly, the stock markets, especially in the US, have not yet priced in the real effects of a recession. Therefore: impulsive rallies are possible (if not probable), but the stock markets have probably still not bottomed out.
Is there a recession coming or is the Eurozone economy scraping by a hair’s breadth after all? A good question. In general (that’s how we would like to put it) it is believed to be […]
Are we seeing the continuation of the correction in the Dax today? Yesterday, Wednesday, it went up and down. After a day of searching for direction, the Dax ended trading with a small loss of […]
Interest rate cuts and cheap money no longer help if corporate profits collapse A big confusion – thoughts after the FOMC protocol on recession and interest rPowell at his inaugurationate cuts Yesterday Fed head Powell […]