Investment Outlook 08.2020

Politicians and market participants seem to be caught up in a sugar-rush-like euphoria. While politicians issue huge amounts of debt — cost-free as interest rates are zero or even negative — the investors are enjoying a market rally of almost all asset classes, detached from fundamental pricing models. The sugar-providers are the central banks, which have forced real and even nominal interest rates into negative territory and have provided ample liquidity via various quantitative easing programs.