Locks – What does it mean now

Dear readers,

The locks take shape. Many of us have definitely enjoyed 3G, 2G, 2G + these days. This is unfortunate for the retail sector that complains of reluctance to buy during the Christmas season. We can understand these complaints either for or against Lockdowns. We take them. However, the effects are dramatic.

Economy and stagnation

The problem is usually underestimated. In fact, the economy is currently facing so-called stagnation. It is a combination of a stagnant economy and inflation. Stockflection also cost a lot in the stock markets in the 1970s. You can protect yourself.

Should investors sell now? Or is it worth joining Procter & Gamble?

Inflation is coming

In fact, the risk of inflation is very high. The inflation rate in Germany is already 5.2%. This is usually a sign of a booming economy. At the moment, however, the risk of inflation running high despite a major economic crisis is particularly high.

Economic growth this year has been very low. We have not yet reached the end of the year. However, the circle closes with the possible locks described above. There may be a rude awakening later this year. Retail cases are not accidental.

For many of these companies, Christmas is the best and most important time of the year. If sales fail due to lockdown, there will be a huge burden throughout the year.

Get a free PDF report on Procter & Gamble: Download it for free here

In addition, supply barriers are further damaged. In this way, economic growth will continue to lag behind for many months. So we came up with the idea of ​​stagnation. The main feature of this is that the risks are significant.

With a stagnant economy, very low interest rates and persistently high inflation, most companies are not the least bit happy, and many are at risk. This is the most dangerous situation in years.

Stock markets, on the other hand, have set new record prices. From the point of view of analysts and investors, this should initially be a strong trend. However, the stock markets are at risk due to very high ratings, falls and profit expectations and the expected bad mood.

After all, you can counteract this by adding large and substantial companies to your portfolio. Munich Re, Allianz, but Procter & Gamble should help in the end. These companies are not affiliated with Lockdown. This is not a bar for them because the markets of these companies have nothing to do with locks. Munich Re and Alliance like other insurance companies are benefiting by increasing uncertainty. Procter & Gamble sells home appliances. Is global and independent of crises. This trend is especially strong for Fiji.