Despite the pandemic: financial markets at new record highs
Our short films on today's monetary and fiscal policy show possible scenarios in the future. These provide ideas on how you can optimally align your asset allocation with your individual needs.
What happens when central banks print more and more money and buy up sovereign debt? Can money be printed endlessly?
Can money flow into the real economy? And what happens to the economic cycle when consumer euphoria returns?
Why are financial markets reaching new record highs while the real economy suffers from the pandemic?
In the first part, we look at the current situation and explain what is currently happening. Expansionary central banks are sometimes keeping interest rates low by buying bonds. As a result, investors are increasingly having to move into “riskier” assets such as equities to meet their target returns – the water in the reservoir continues to rise. As long as central banks remain very expansionary, risk assets are well supported, even if temporary fluctuations are possible at any time.