The newsletter is a roundup of financial news, investment status, and other financial trivia, giving you the insight you need to manage your money in any economic situation.

General overview of economic trends: a review of key developments and investment opportunities

1. US budget deficit exceeds USD 1.8 trillion: The US budget deficit is expected to exceed USD 1.8 trillion this year, pointing to significant fiscal challenges for the world’s largest economy. This may have an impact on financial markets, in particular on investor confidence in the stability of US debt.
2. Higher-than-expected inflation in the US: Inflation in the US was 2.4% in September, slightly higher than the 2.3% expected. Although inflation is not significantly above expectations, investors continue to wonder how this will affect interest rates and, consequently, the value of equities and other investments.
3. Lay-offs at large companies: Large US companies such as Boeing are announcing 17,000 job cuts as a sign of restructuring and adjustment to market conditions. Similar trends are also being seen in Slovenia, with the Mahle company in Šempeter planning to cut 600 jobs.
4. Record highs on the stock markets: the US S&P 500 index has surpassed 5,800 for the first time in history, a key milestone for the global capital market. The market capitalisation of the index has increased by USD 13,000 billion since 2023, reflecting the exceptional growth of equities in the recent period.
5. Gold prices reach record highs: Gold has reached an all-time high in euro terms, currently €2,434 per ounce, a record in modern history. The rising price of gold is linked to uncertainty on financial markets, inflation and geopolitical risks, which is leading investors to increasingly turn to this precious metal as a safe haven investment.

The US S&P 500 index reaches historic highs

The US S&P 500 index has surpassed the 5,800-point mark, a historic high. This growth is mainly driven by the “Magnificent Seven” – technology giants such as Amazon, Facebook (Meta), Alphabet, Nvidia and others. However, it should be noted that the growth in profits outside these companies has not been so impressive. Excluding the contribution of these giants, there have been five profit declines in the last six quarters.

Comparison with 2007

It is important to compare the current situation with 2007, when shares peaked before the financial crisis. Even then, the S&P 500 was at its peak, showing similarities with today’s growth, which could imply a certain caution for investors.

Vir: Envato

Why does the price of gold keep rising?

The price of gold has more than doubled in the last decade as investors seek safe havens for their wealth in times of economic and political uncertainty. Over the last five years, the price of gold has risen by 76%, making gold one of the best investment opportunities over this period. Currently, gold is also becoming increasingly attractive to individual investors, particularly in Europe, where it is a popular investment.

Gold: a popular investment in Germany

In Germany, gold is the third most common investment, with 28% of Germans still actively involved in investing in gold. This means that gold is highly trusted as a safe investment, especially in uncertain times.

The newsletter “Financial insights and trivia” does not constitute an investment advisory service. Its content does not constitute recommendations to buy or offers to buy, but is intended to inform the public about developments in the financial field. Past returns are not a guarantee of future returns. Please consult a financial adviser for advice.