The results of the ifo business climate survey for January were sobering. The mood in industry at the start of the year is just as poor as it was at the end of last year. The index of business expectations in the manufacturing sector, which is so important for the private wealth stock market indicator, even fell once again - from minus 23.0 to minus 26.0 points. To be honest, we had expected more. By now, every politician must realise that a fundamental economic policy is necessary if Germany is to remain an industrial location. There was therefore certainly hope that the prospect of a turnaround would be reflected positively in business expectations for the next six months. A similar feat has already been achieved twice in the last 50...

A month ago, there was a little hope in German industry. Business expectations had improved again for the first time after falling four times. Another increase in November would have opened up the possibility of an economic turnaround, which the ifo Institute itself defines as three consecutive increases in business expectations. Would have, would have.In the current month of November, writes the Munich-based ifo Institute, business expectations have fallen again. After minus 15.8 points in October, they now stand at minus 18.8 points. The spark of hope has thus been extinguished.We had already feared this a month ago. If Donald Trump were to win the US election, we wrote at the time, there was a high probability of a further deterioration...

According to the Munich-based ifo Institute, the downward trend in the manufacturing sector did not continue in October. Although company bosses once again assessed current business as worse, their expectations were less pessimistic. This is the first step on the road to a better future. As a reminder: according to the diction of economic researchers, it takes three consecutive increases in business expectations to establish a new positive trend. However, it will take some time until then. If Donald Trump wins the US election, there is a high probability that expectations will deteriorate again.The economic component of the private wealth stock market indicator therefore remains ‘red’ for the time being.A particularly interesting constellation...

The core sectors of German industry are in trouble, according to the ifo Institute's latest business climate index for September. In fact, the business climate has been trending downwards since mid-2021 and has now reached its lowest level since the deep recession of 2008/2009 - at least if the three extreme coronavirus shock months in spring 2020 are excluded. The situation is bad, the lack of orders has worsened and expectations in the boardrooms are becoming increasingly pessimistic. A month ago, the private wealth stock market indicator had already interpreted the dramatic deterioration in business expectations in industry as a downward economic trend reversal and reduced the equity allocation accordingly. Unfortunately, this negative...

The ifo business climate survey for August leaves no doubt: German industry is sliding further into crisis. The economic component of the private wealth stock market indicator thus switches from amber to red. Background: If business expectations in industry deteriorate three times in a row after a sustained upturn, this has often signalled a downward economic trend reversal in the past. In such a phase, it often becomes difficult on the stock market. This is why the private wealth stock market indicator then reduces the equity allocation. From September 2023 to May 2024, business expectations in the manufacturing sector initially improved gradually from minus 29 to minus 6.4. There were hopes of an imminent upturn in industry. This has...