Dear Readers,

despite the recent significant recovery in share prices, the signals from the capital market seismograph remain negative.

As you know, the seismograph distinguishes between three phases: "green" (calm market = buy), "yellow" (turbulent market with positive expectation = invest, but with hedging) and "red" (turbulent market with negative expectation = do not invest). "The probability of negative turbulence has recently risen dynamically and has now reached levels last seen during the financial market crisis . The probability of calm markets is virtually zero. In this constellation, it is too risky to reinvest. From the seismograph's point of view, there is therefore currently no reason to move away from the very defensive weighting of the stock market in the portfolio," explains Oliver Schlick.

Conclusion:

Since the sell signal of the capital market seismograph at a level between 10800 and 11000 points in the DAX, the private-wealth stock market indicator only advises an equity quota of 30 percent. In concrete terms, therefore, only 30 percent of the capital individually earmarked for shares is currently invested in the stock market. 70 percent is not invested and also remains in cash as liquidity.

Take care of yourself,

Yours

Klaus Meitinger

Note: Despite careful selection of sources, no liability can be accepted for the accuracy of the content. The information provided in private wealth is for information purposes only and does not constitute an invitation to buy or sell securities.