After closing at a record high two weeks ago, markets continued their merry-making last week. At the same time, in the slipstream of general positive news, interest rates jumped sharply. In addition to rising interest rates and fears of higher inflation (driven by the hopes of economic growth), the US central bank chief’s appearances have attracted extraordinary attention. His statement that the expansion of money supply does not lead to inflation made people listen just as much as the announcement of a new Fed policy that would be reactive instead of pre-emptive as before. The next few quarters will show us what the Fed intends with the fundamental changes.
Due to the changed situation in the stock market, investors revised many of their allocation decisions, which led to a reshuffling of portfolios in the past weeks. We think that better-informed market participants are getting ready for changing market conditions. Only time will tell if they will be proved right. In the meantime, ONE SIGNAL provides its subscribers with spot-on information to help them navigate through stormy times with confidence. Last week was marked by extreme price movements. While oil lost 6.31% of its value, US T-bonds rose by 6.45%. Gold saved the spirits of its investors with a gain of 0.69%. The S&P500 ended the week down 0.76%. ONE SIGNAL consistently delivered long signals, apart from Thursday, and posted a weekly gain of 1.97%. In times of spectacular price movements in some asset classes, which attracts attention, we very often think of the fable of the tortoise and the hare. We are still on the way to outplaying the big players with small steps.