Gebt that the waters have risen. You better start swimming or you’ll sink like a stone. Because times are changing,” sang the later Nobel Prize winner Bob Dylan in a famous song “The Times They Are A-Changin” in 1964. Dylan proved to be a prophet at the time, as he foresaw the downfall of the post-war world, which only happened years later should become obvious – also on the stock market, which entered a long period of weakness at the end of the 1960s.
Now it could be that time again. A turning point in the capital markets has recently been discussed more and more frequently. “A certain structural break is taking place,” stated Tilmann Galler, capital market strategist at JP Morgan AM, recently at the Fund Congress in Mannheim. If macroeconomic things change, this has a fundamental impact on the capital markets. Axel Cron, investment director of HSBC AM in Germany, also speaks of a structural break that has not existed for a long time. The global capital markets are at the beginning of a new era. “There will be no return to the situation of a few months ago in the long term. Investors have to be prepared for that.”