Back to normality

In the industrialized countries, the corona pandemic is gradually stabilizing and developing in a relatively orderly fashion. In Germany, this easing of the infection figures has led to a real boost in easing measures. However, this discussion is not only taking place in Germany; in all countries there is increasing pressure to relax the rigid lock-down measures and to give people more freedom again.

In the end, these new freedoms are not reflected in the financial markets. Here, the planned easing and the restarting of the economies have already been priced in over the past few weeks. However, the easing of the monetary policy also raises concerns about a second wave of contagion. If this were to be too strong, it could also lead to renewed – hopefully targeted – restrictions in economic and private life. Accordingly, the price fireworks have come to an end for the time being. In the coming weeks, prices should consolidate at the levels reached or even decline slightly.

COVID-19 still has a firm grip on the emerging markets. In addition, the negative consequences of the fallen oil price are still being felt in some cases. Both effects together should have noticeable negative economic and social consequences. The hectic search for returns is causing investors to largely ignore these risks as well.

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