Update on the current positioning

The stock markets have entered yesterday – not quite unexpectedly – a correction phase, which the press links to the White House.

Our first preliminary assessment of the situation is based on the following hypotheses:

1. Republicans will only really consider an impeachment when Donald Trump’s politics endanger the re-election of numerous members of Congress. Because the election is not until the fall of next year, there is still time. Consequently, we don’t expect impeachment proceedings anytime soon, albeit this is not impossible.
2. Although the worldwide positive market development was sparked by Trump, it is not based on his announcements. Prices keep rising due to an improved business environment for many companies worldwide. Nothing has changed in this aspect so far.
3. We expect that the market can, by all means, correct by up to 10 %. This, however, doesn’t represent the end of the upward trend from today’s perspective but is rather a breather that we will actively use for the reorganization of our portfolio.
4. As of today, we have slightly lowered the stock quota of the portfolio and have started to hedge through futures on a small scale.

We do consider the situation to be a bit more dynamic as of today but in no way dramatic.

Should the prices come down more intensely, we will use our cash to selectively acquire bargains.