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By Dr Felix BRILL, Chief Investment Officer VP Bank
The broad equity indices in Europe and the US again lost 10% or more on Thursday, March 12. All investments that are somehow considered risky crashed. And even the search for safety proved more difficult than usual.
In the bond markets, the buy-sell-spread in trading opened up enormously, a sign that there were more sellers than buyers. Even the US money market showed the first signs of stress, forcing the US Federal Reserve to pump additional liquidity into the market. Gold also came under pressure in the course of the day, losing 4% at times. This is a clear sign that more and more investors need to delever and liquidate parts of their portfolios.
In exceptional market situations,...
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