The week 19.01. – 22.01.2021

Due to Martin Luther King, Jr. Day, on Monday, we had another shortened trading week on the U.S. stock markets. The markets had to process different news. The inauguration of the new US president took place under the sign of the Covid19 pandemic. The rising infection figures, which has had increased to over 96 million and nearly 2.1 million deaths (source: WHO) did not frighten investors, as there is hope with the different vaccines. Major news for the markets was the hearing of the former head of the FED Janet Yellen, whose appointment as Treasury Secretary seems certain. The U.S. Treasury Secretary announcement of “…going big” sent a clear signal to markets to extend MMT (Modern Monetary Theory) to an unprecedented extreme of flooding the already flooded economy with even more liquidity. The consequences of such extensive monetary policy will be a devaluation of the US dollar against other currencies; accompanied by a massive loss of purchasing power. However, those in charge obviously know more. The markets manifested themselves, in view of this announcement and the message to accomplish over 100 million inoculations, as extremely optimistic. The S&P500 was supported by positive news of different firms, closing at +1.60%. The positive development of the economies in prospect, supported oil prices, rising by 0.52%. Inflation fears drove investors to gold, jumping almost 3.00% week-on-week. The losers of the week were US T-bonds, down 1.98%. ONE SIGNAL delivered long signals for the entire week and thus participated in the price increases with a plus of a remarkable 1.20%. As an increasing number of market observers warn of a bursting of the asset bubble, we must recall that in volatile times, the most successful strategies have been those that have flexibly adapted to market conditions and have been able to anticipate market developments. In the past, ONE SIGNAL proved to be a reliable companion, especially in volatile market phases. We wish all those interested in the stock market a successful week. Stay healthy!