Although the stock exchanges of the world usually fall into a light hibernation during the summer months, it was quite different in 2019. Furthermore, news of China-US trade disputes swept through the gazettes and the Iran crisis also had its place in the news, rounded off by a G7 meeting. With Donald Trump, every day continues to be a new beginning, which sounds today as if the president wanted an agreement with China, sounds like tomorrow again after total trade war. On one day he sanctions the Iranian foreign minister on the other he offers talks on a nuclear deal. Trump is like a box of chocolates “You never know what you’ll get”
Of course, the markets react to any comment, volatility increases and uncertainty grows. According to which the interest rates of the 2-year government bonds were higher than that of the 10-year-olds in August, which may indicate an approaching recession, there was a veritable sell-off on the New York stock exchanges. But in the last week of August, markets stabilized again, recalling that economic data in the US was stable, unemployment was low, and the Fed was looking to see further interest rate cuts. Even though analysts disagree, we expect to see further rises in the markets, at least until next year’s presidential election. It is also to be expected that Donald Trump will be playing for time with regard to the trade agreement with China, and then conjure it up at the right time in the election campaign in order to have arguments for re-election.
In any case, the next few weeks and months are going to be very exciting and there are some chances to make a profit!