Final sprint?

At first, the German gross domestic product (GDP) disappointed, which revealed the deepest recession since post-war history. This fell by 10.1 percent compared to the previous quarter, with the first quarter already “shining” with a minus of 4.7 percent. Then followed the numbers for US economic growth last quarter, which were also breathtaking – bad. As a result, US GDP fell by a remarkable 9.5 percent compared to last year. Also the biggest decline in post-war history. Private consumption in the USA dropped 10.7 percent year-on-year. With these poor economic growth figures, the stock markets reacted last Thursday with correspondingly significant discounts.

Use the moment!

From the recent past one could learn that it is always right to buy when there are setbacks. Finally, the prices rise significantly afterwards. Many inexperienced investors thought that how easy it is to make money on the stock markets. The course reset last Thursday should therefore have been a welcome opportunity to position yourself again at a more favorable level. After all, the rally has so far left almost no trace on many players, so that setbacks are conceivably seen as an opportunity to buy. However, the courses have been a bit hot in the past few weeks. In addition, the upswing of some indices is supported by fewer and fewer values. For example, titles like Amazon or Apple stand out particularly positively, while many other titles in the background have to struggle significantly more under the consequences of the corona crisis.

The right mix is ​​what matters

From a seasonal perspective, we are now in the worst stock market section of the year, which extends from early August to late September. In positive terms, there could be favorable introductory courses again in this period. From a negative perspective, a reset does not seem unlikely due to the partially overheated movements. In the end, the mood was still too bad to expect a clear downward trend. With the last week’s reset and the associated opportunity to get started, the tide could now turn. It is therefore advisable to pay particular attention to the mood of the market participants!

We wish you a successful trading week

Stephan Feuerstein
Leverage certificates traders

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