Markets Update Tuesday 17/03/2020 – Drastic Measures

Frankfurt – 17/03/2020 Drastic Measures Now the drastic support measures in the USA seem to be gradually taking effect after all because the international markets at least stopped their free fall for the time being.  On Tuesday, the US Federal Reserve announced new money injections to support the short-term financing of companies. This is in response to fears of a …

Markets Update Monday 16/03/2020 – Lockdown

Frankfurt – 16/03/20 Lockdown Governments in Europe are taking ever more drastic action in the virus crisis, and public life is being shut down. Whether it’s flight bans, border closures, the closure of restaurants and shops, the declaration of a state of emergency, but also major economic stimulus programs – the list of measures with which governments in Germany and …

Markets Update Friday 13/03/2020 – State of Emergency

Frankfurt – 13/03/20 State of Emergency US President Donald Trump has declared a national emergency because of the spread of the coronavirus in the USA. The measure would release additional federal funds of up to 50 billion dollars to fight the novel coronavirus Sars-CoV-2, Trump said. This declaration of a state of emergency gives Trump far-reaching powers, including access to …

Markets Update Thursday 12/03/2020 – Hysteria

Frankfurt – 12/03/20 Hysteria Here it is, the perfect storm that’s taking apart life as we knew it and that is crashing the world markets. Reactions to “fight this dreadful virus” are getting out of control, are completed uncoordinated, often illogical and remind to the Hollywood movie “Idiocracy”.  Be it as it may, the World Health Organization now classifies the …

The blackest trading days since 1987

19 October 1987 On this memorable day, speculation on higher US interest rates caused prices to plummet worldwide. The Dow Jones index plunges 22.6 per cent. Even after the attacks of 11 September 2001, the slump was not as severe. In Frankfurt, prices measured against the recalculated Dax – the index was not introduced until 1 July 1988 – tumble …

Markets Update Wednesday 11/03/2020 – Trembling volatility

Frankfurt – 11/03/20 Trembling volatility Today, Wednesday, the panic was once again the order of the day. After the global indices skyrocketed on Tuesday, the mood today was one of a sell-out, and stock prices plummet.  The markets thus remain firmly in the grip of the corona crisis, which is continuously producing new twists and higher infection rates – and …

Markets Update Tuesday 10/03/2020 – Dead Cat Bounce?

Frankfurt – 10/03/20 Dead Cat Bounce? Especially Wall Street presented itself recovered with strong gains of over 4 per cent for the day. However, many analysts see a so-called “dead cat bounce” in this move and are warning investors to stay vigilant.  While there were again only a few new infections in China, the number of infected persons in Germany …

Markets Update Monday 09/03/2020 – Droppin’ like it’s hot

Frankfurt – 09/03/20 Droppin’ like it’s hot The dangerous combination of the corona crisis and the crash on the oil market caused panic among investors today and dragged the stock market down.  Only a few minutes after the opening of the New York Stock Exchange, trading was suspended for 15 minutes due to heavy losses. The reasons given for the …

Dr. Doom warns of “White Swans”

Nassim Taleb wrote in the past, when it came to rare, highly unlikely events in financial history, of “black swans”. And so today Nouriel Roubini warns against the opposite, against “White Swans”. “Black Swans” stand for extremely rare and improbable events. So Nassim Taleb wrote about this phenomenon for the first time in his book “Fooled By Randomness” and even …

Markets Update Friday 06/03/2020 – Recession Fears

Frankfurt – 06/03/20 Recession Fears  Overall, investors in the stock market remain deeply unsettled by the consequences of the coronavirus eruption. Every day, new infection figures are coming in via the ticker from more and more countries. Stock markets remain highly volatile, and fear of the consequences of the virus crisis has been prevailing for days. There is still no …