Once a month Florian Bohnet, Head of Research at DJE, talks about what investors can expect in the coming weeks. A further slowdown is expected in August, and more confidence is expected in September.
August lives up to its reputation of being a weak month for the stock market. That's why the biggest task is to limit losses first. Looking ahead, however, we are confident about fundamental and monetary indicators, most of which are in order.
Central banks have delivered - and disappointed
As expected, the US Federal Reserve lowered key interest rates by 25 basis points for the first time in ten years, and the ECB was thinking loudly about low interest rates and a possible bond purchase program. But market participants had expected more.
Stefan Breintner: Deputy Fund Manager of the Dividend Strategies
Since the beginning of July 2019, Stefan Breintner is responsible for DJE's dividend strategies as deputy fund manager together with fund manager Dr. Jan Ehrhardt.
Our view to the future remains confident but the trees are unlikely to grow into the sky in summer. First of all the usual seasonality is against it and secondly the prices have already risen considerably this year. We expect the market to consolidate over the summer.
DJE celebrates 45th anniversary
DJE has been successfully active as an independent asset manager and fund manager in German-speaking countries since 1974. The FMM method, developed by Dr. Jens Ehrhardt and now fully digitised, is the basis for long-term investment success.
Allow Multi-asset funds to let the central banks work for you
The central bank's zero-interest policy means that German savers miss out on a high double-digit billion euro amount every year. Low or non-existent interest rates and relatively high valuations on the stock markets raise the question of how to invest your money profitably with a manageable risk. Multi-asset funds are well suited.
Potential for value
It is still too early for a comeback of value stocks but the underperformance of these stocks has never been greater than currently. If leading indicators turn positive value stocks have some potential. We are at gunpoint.
Sabre-rattling in the trade conflict
The markets in May were particularly burdened by the disappointment caused by the fruitless talks and the recent escalation of the trade conflict between the USA and China. Even the positive impulses such as the expansion of corporate earnings growth in the first quarter could not improve this situation.