The new world for investors will be a healthier one

It rarely happens that the publication of a document shakes the markets and at the same time shows where the year is going. But that is exactly what happened last week: In the minutes of the US Federal Reserve (Fed) of its December meeting, the monetary politicians indicated that the Fed’s balance sheet should shrink faster than previously expected. This made it clear to investors that the much discussed interest rate turnaround should not be trifled with. The courses reacted accordingly.

If the most important central bank defines a new monetary policy framework, it has far-reaching consequences. The good news, however: For investors, in the long run this leads to more normal conditions and ultimately more stability in the portfolio.

Since the financial crisis of 2008, the leading central banks have been pumping ever more and cheaper money into the economy in order to stabilize the financial system, to keep the economic system running, which has also been used to finance the ever increasing national debts at low cost.