Stagnation all around us

As the international financial institutions currently threaten us with an economic slowdown, and the American central bank stops printing money, the S&P 500 broad market index in New York, however, continues to register historic highs. The sanguine mood of consumers across the ocean, which is supported by strong data from the sector and better than expected Q3 results, was reflected in share prices. Even though analysts are aware that prices are already inflated and an interest rate increase cycle is to start in the US in possibly the next two or three quarters, the general mood is predisposing people to buy more goods. This mood was also shared by the investors active on the European trading floors: the German DAX hit a 2014 high in the middle of the year. Nevertheless, for the EU’s largest economy there are currently no significant pointers towards better macroeconomic prospects. The IFO business climate index, which reflects the mood o