STOCK MARKET REPORT by GRIMALDI & PARTNERS

MONTH REVIEW - FEBRUARY 2021

The international stock markets ended February with gains.

Supporting factors:

The approaching extensive corona aid package for the US economy.

The ongoing vaccination campaign has supported expectations of an early recovery from the Corona crisis.

Mario Draghi, the former head of the ECB, will endeavor to form a government in Italy and save the country from political turmoil

Particularly noticeable at TITLE LEVEL:

Lindt title seduces investors with share buybacks and dividends

When it presented its annual figures, the chocolate manufacturer scored points with a solid outlook, a juicy dividend and, in addition, a share buyback program on the stock exchange.

The chocolate manufacturer's papers had recently lagged behind the market and clearly strayed from their record highs.

In January, Lindt had scared investors away with the sales figures: These had indicated a slower than hoped recovery. But now the chocolate manufacturer is showing itself again with fresh optimism.

MONTH OUTLOOK - MARCH 2021

As expected, February developed positively after the losses in January. Now the rise in interest rates is the main topic. In fact, 10-year US Treasury bond yields have soared to over 1.50% in a short period of time. The question is whether this rate hike is temporary or permanent. Due to the massive slump in raw material prices last year, there are some indications that the rise in inflation, i.e. the rate of price change, has risen rapidly because prices have quickly recovered from a low level. At a higher level, prices may no longer rise sharply in percentage terms, which is why a calming down in interest rates can be expected. Perhaps long rates will fall back again.

So, we expect a downward trend in March due to the uncertainty surrounding the rate hike.

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