The escalating trade conflict between the US and China has significantly burdened global markets. New US tariffs and China’s retaliatory tariffs led to a stock market crash and fears of a global recession. Meanwhile, the S&P 500 recorded a decline of ten point five percent. In Germany, the economy is growing only marginally despite new coalition plans, with a projected increase in gross domestic product of zero point one percent. Comprehensive investments and tax reliefs are planned, but critics complain about the lack of concrete measures.
In addition to geopolitical tensions, central banks worldwide are under pressure to cut interest rates. After the European Central Bank already lowered rates twice, a response to weak economic data is also expected from the US Federal Reserve. Meanwhile, gold prices as a safe haven increased by an impressive nineteen percent in the first quarter of 2025.
A study highlights the ongoing wealth inequality in Germany, where the wealthiest ten percent hold the majority of wealth. This raises questions about social justice.
In light of global uncertainties, investors need to diversify their portfolios and pursue defensive strategies.