Inflation
Commented by Carsten Mainitz on April 25th, 2022 | 13:22 CEST
Mutares, Edgemont Gold, Barrick Gold - Inflation soon to exceed 10%! What to do?
According to some experts, inflation could soon rise above 10%. The possible reaction of the central banks by increasing interest rates to contain inflation remains theoretical so far. After all, can the world's so heavily indebted countries afford significantly higher interest rates at all, and wouldn't a higher interest rate level stifle the economy? The bottom line is that a prolonged period of high inflation is very likely. Investors can effectively position themselves against the loss in value of their assets by investing in tangible assets. That means stocks, bonds, real estate and commodities belong in the portfolio!
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Commented by Stefan Feulner on April 21st, 2022 | 11:35 CEST
Plug Power, Barsele Minerals, Nordex - Prepared for the crisis
A ghost is haunting, not only in Europe. It is the ghost of stagflation. Stagflation means stagnating economic growth with rising inflation. Russia's invasion of Ukraine has now added another factor of uncertainty. The central banks are being challenged. While the Fed reacted by raising interest rates for the first time, the European Central Bank has shone by failing to act. The consequences for consumers are drastic, and inflation is likely to weigh on us for a long time to come due to the food and energy crisis.
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Commented by Stefan Feulner on April 13th, 2022 | 17:59 CEST
Commerzbank, Kodiak Copper, NIO - Unstoppable trend
Remember last year when both Federal Reserve chief Jerome Powell and ECB frontwoman Christine Lagarde called rising inflation "temporary"? According to the Federal Statistical Office, consumer prices for March have come in fresh across the news tickers, showing a 7.30% increase, the highest level since reunification. On the one hand, of course, the Ukraine conflict impacts rising energy and commodity prices, but even after the end of the warlike activities, many goods in demand because of the energy transition are likely to at least maintain the high price level.
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Commented by Stefan Feulner on April 11th, 2022 | 19:03 CEST
K+S, Edgemont Gold, NIO - Shares as protection against demonetization
Inflation rates have been rising steadily since the end of 2020. What was initially declared by central bankers as a temporary event is becoming a permanent problem for society and the economy. The loose monetary policy, the shortage of raw materials, and the blown-up supply chains were responsible for the fact that the inflation rate in the USA was 7.9% in March, the highest since 1982. As a result of the sanctions imposed on Russia, the supply of raw materials and oil and gas is becoming even tighter, causing prices to shoot up once again. Investors can protect themselves by investing in producers of scarce commodities. In addition, for diversification, gold should not be missing in any portfolio as protection against currency devaluation.
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Commented by Stefan Feulner on April 9th, 2022 | 07:27 CEST
BioNTech, Triumph Gold, Rheinmetall - Uncertainties everywhere
The ongoing fighting in Ukraine and concerns about an escalation of the situation are worrying capital markets worldwide. Nevertheless, the leading stock market barometers were able to distance themselves significantly from their lows. Now, the next blow has followed with the publication of the FED's meeting minutes. The US Federal Reserve wants to accelerate the reduction of its balance sheet total and let bonds worth up to USD 95 billion expire without buying again. In doing so, the monetary authorities are hitting technology stocks in particular, which have already been in a sharp correction since the beginning of the year. Gold, on the other hand, is barely reacting despite the expected interest rate hikes, a strong sign for the precious metal.
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Commented by Fabian Lorenz on March 15th, 2022 | 11:56 CET
Nordex, K+S, Defense Metals: Shares for the "inflationary shock"?
Russia's war in Ukraine is causing massive dislocations in the commodity markets. Not only for oil and gas but also for metals and agricultural commodities. The consequences are clear: Everything is getting more expensive. At the same time, resources outside Russia and China are becoming strategically more important. That speaks in favor of the German potash producer K+S. However, the share has already done very well, with analysts issuing warnings. The situation is different for Defense Metals. The Canadian rare earth explorer is described as an "undiscovered pearl" with takeover fantasy. In the meantime, renewable energy must also be called a commodity. Nordex benefits from this and receives tailwinds from analysts. But, there are also problems at the wind turbine manufacturer, and these need to be solved.
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Commented by Mario Hose on May 20th, 2020 | 14:51 CEST
AMS, Triumph Gold, Varta, Yamana Gold - what investors need to know now
The major stock exchanges in Europe and the USA have further stabilised in recent weeks. At midweek, the DAX was up 0.46% to 11,126 points. Also the indications for Wall Street are positive at this point in time and it all looks like the recovery trend will continue today. Despite negative reports in connection with the Corona Pandemic, the measures taken by central banks and politicians are obviously showing their effect. However, the uncoupling of the economy from the stock market by increasing the money supply is a cause for concern, and investors should therefore be particularly cautious.
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