Dear Readers, The future prospects for the German economy continue to cloud over. The Munich-based ifo institute reports the fourth consecutive decline in business expectations. Expectations declined particularly sharply in the manufacturing sector, which has always been a good early indicator of trends in the global economy due to its export-driven nature in the past. Obviously, the threat of protectionism is now putting considerable pressure on the mood.

Dear Readers, Since last month, the values of the capital market seismograph have hardly changed. As you know, the team around Professor Dr. Rudi Zagst and Oliver Schlick distinguishes between three phases in the US equity market: "green" (quiet market = buy), "yellow" (turbulent market with positive expectations = invest, but with hedging) and "red" (turbulent market with negative expectations = do not invest). In the past four weeks, the seismograph's values went up and down in a short sequence - "early" April weather;

Dear Readers, the high spirits on the German executive floors are evaporating, writes the Munich-based ifo Institute. The economic researchers report the fifth consecutive decline in business expectations. The ifo traffic light also consistently shows a deep "red" (chart below). As the assessment of the current business situation remains at a very high level, expectations and the situation now diverge extremely widely. In the future, either the situation will deteriorate significantly - or expectations will have to recover quickly.

Dear Readers, a little more than two weeks ago, the model of the capital market seismograph had suggested cautiously increasing share quotas again. The current evaluation of the team around Professor Dr. Rudi Zagst and Oliver Schlick confirms this. "The storm has passed," Oliver Schlick interprets. As you know, the capital market seismograph distinguishes between three phases in the US equity market: "green" (quiet market = buy), "yellow" (turbulent market with positive expectation = invest, but with hedge) and "red" (turbulent market with negative expectation = do not invest).

Dear Readers, The downward trend in the ifo business climate has stopped, the Munich economic researchers write. In fact, the overall index remained unchanged for the first time in May after five consecutive declines. However, this is not a signal for an all-clear. Because the most important component - the expectations directed towards the future - continue to fall; In the manufacturing sector - which has always been an indicator for the trend in the global economy due to its heavy reliance on exports - expectations continue to decline almost unchecked (the blue line in the chart below indicates expectations).