The stock markets are now in danger of being infected by the coronavirus! After a massive rally, US investors in particular are extremely positioned on the long side. There is “complacency” (confidence). If the virus, as an unforeseen “Black Swan”, suddenly puts selling pressure on the market, a domino effect could set in. This could be a meltdown of the heavily leveraged investors. Because the stock markets, as is well known, like to take the path of greatest pain. The real economic consequences of the epedemic in China are becoming ever greater (New Year’s Day is being extended, more and more major cities are under quarantine). Five cases have now been confirmed in the USA. The stock markets in Asia with stronger losses. And that at the start of a very important week with the figures of the US tech companies and the Fed meeting.
The markets are currently under the impression of the Trump-Ukraine affair. But in recent months (since summer 2018) it has been the trade war that, alongside the Fed (and the ECB), has been the main […]
About the weak points of the two superpowers in the trade war – focus on China Hadn’t China’s Prime Minister Xi Jinping just recently drawn his people’s attention to a period of meagre deprivation? The […]
The purchasing managers’ index for Germany (Markit PMI; February) has just been published: Manufacturing 47.8 (forecast was 44.8; previous month was 45.3) Services 53.3 (forecast was 53.8; previous month was 54.2) Overall index 51.1 (forecast […]