Monthly Market Monitor – July 2021

Our experts constantly monitor and evaluate developments in the economy and the financial markets. You can find insightful commentaries, in-depth analyses and forecasts on the economic situation every month in our publication, the “Monthly Market Monitor”.In the latest issue, we focus on the following topics:

Economy: The Delta wave is rolling in
A new, more aggressive Delta variant of the coronavirus is on the march in Europe and large swaths of the rest of the world. It’s increasingly foreseeable that COVID-19 will become endemic and that the coronavirus will continuously trouble us in the future.

Investment Strategy: The momentum effect
A speeding train is not so easy to stop. The same goes for equity markets: an established trend must weaken first before it reverses. In the wake of the MSCI World index’s more than 10% gain over the first six months of this year, stockholders statistically can anticipate a pleasing second half of 2021.

Here to stay? An inflation update
Central bankers (in the USA) these days have been calling the recent high inflation rates “transitory.” Some evidence indeed suggests that inflation will settle back down in the medium term after undershooting in the year of the coronavirus and overshooting this year. However, one shouldn’t overlook the existing long-term inflation risks.

Sustainability:  Green transformation
Our global society is arguably facing its greatest challenge ever: CO2 emissions have to be reduced and we need to contain the devastating consequences of climate change. The urgency and costs of a green transformation are high, as a recent report by the International Energy Agency (IEA) points out.

Read more in the latest issue of the Monthly Market Monitor