The week 26.10. – 30.10.2020

For several weeks, market participants have been waiting for a market correction so that they can find a more favourable time to enter the market after an early exit. Many have explained their non-participation in the price increases by pointing out that the fundamental data no longer have anything to do with the market trend. The flooding of the market with cheap money has apparently caused a “bubble of everything” in which the stock market has become an end in itself. Last week was influenced by two triggers that caused the S&P500 to suffer losses. The second wave of the Covid19 pandemic and its consequences on the one hand and the consequences of the first wave that have not yet been overcome on the other. In addition, political unwillingness to compromise was intensified by the presidential elections. Thus an enormous aid package for the US economy has been put off and is waiting for a miracle. In the meanwhile, about 25% of small businesses have laid off their employees, or closed down for good. In the shadow of this uncertain outlook, the price of oil and gold closed in the red. The S&P500 itself suffered a loss of about 5%. On the other hand, the winners were the US T-Bonds with 5.13% and ONE SIGNAL with a gain of 4.38%