Risk management of banks - COVID drives the transformation

New technologies are changing the financial industry permanently and the COVID pandemic is accelerating the digitalization of the banking infrastructure. All areas are affected by the digital transformation – from the processing of customer transactions to decisions at the highest management level: digitalisation accelerates processes, improves efficiency, and increases the transparency of…


Are all the departments of all the central banks staffed by Romans?

  Reflections on unemployment, inflation and the FED The US Federal Reserve has achieved its inflation target, current inflation rates are higher than the target inflation and are making up for inflation rates that were too low in the past. We try to show why further expansionary measures are unlikely to have much positive impact on employment, but are only likely to fuel inflation.…


The agony of choice

Success on the stock market can be achieved in various ways. Depending on the character of the shares in which one wants to invest, the investment strategies one can resort to can be divided into substance or value shares as well as growth shares. And then there is the long-term alternative of quality stocks, also called compounders. Which is the best strategy? There is no clear answer, that…


Invest with a clear conscience

More and more investors are taking sustainability into account in their investment decisions. They invest in an ESG-compliant manner, i.e. according to the criteria of environmental and social compatibility as well as good corporate governance (Environment, Social, Governance, ESG). In practice, this is not easy. Equities and also increasingly bonds are the most important components of…


The dilemma of climate change is the prisoner's dilemma

  We show, with the help of an excursion into game theory, why it is so difficult to reach a cooperative solution among all nations regarding “climate change and environmental protection”. We venture a prognosis on whether and how climate change could work.   Climate change imposes significant costs on all of humanity The lion’s share of these costs is not borne by…


The fear is going around

Fear, or at least concern, is sweeping the financial markets. Are the current rising prices having a negative impact on growth? Will interest rates rise and strangle the economic recovery? According to the textbooks of national economics, this would be the logical consequence. If it weren’t for the many pandemic-related special factors. Times are anything but normal at the moment, the…


Silver - Part 4

Which strategies work in the silver and gold markets?   In the fourth part of the article, we show which strategy achieved a better return than a classic “buy and hold” approach. While the third article dealt with moving-average based strategies, the fourth part examines strategies based on momentum and valuation. It shows that the stationarity of the gold-silver ratio (GSR)…


US economic stimulus programmes and infrastructure

US President Joe Biden, disparagingly called “sleepy” by his blond-haired predecessor, has clearly exceeded expectations in his first 100 days in office. In foreign policy, he has spoken plainly and told the despots in Moscow, Beijing, Istanbul and elsewhere what he thinks of them and what they can expect. In terms of economic and social policy, he has even stepped up a gear –…


The car industry makes e-mobile

Who would have thought that just a few years ago: A paradigm shift is taking place in the automotive industry. Forced and apparently just in time. After more than 150 years, the combustion engine – diesel as well as petrol – has reached the end of its product cycle. This type of propulsion, which has been pampered for decades by the technology leaders in this fossil discipline and…


Silver - Part 3

When should you be invested in silver or gold?   In the 3rd part of this series of articles on silver we try to examine simple investment strategies. It turns out that using the gold-silver ratio (GSR) is not very suitable for applying simple moving-average strategies. Instead of using them for investment decisions, it was better in the past to “simply” buy and hold.  …