The escalating trade conflict between the US and China is causing significant turbulence in the financial markets. Despite strong US labor market data, the S&P 500 and US high-yield bonds experienced massive sell-offs reminiscent of the 2020 pandemic shock. China has responded to US tariffs with counter-tariffs, further exacerbating uncertainties. Analysts have significantly lowered their earnings forecasts for the S&P 500 for 2025. Economic prospects in the Eurozone are also subdued, with ECB observers revising growth forecasts downward and declining economic expectations according to the ZEW Financial Market Report. These uncertainties are reflected in market volatility, with investors increasingly turning to gold as a safe haven. Young investors are encouraged to leverage the benefits of compound interest in this volatile environment.
04.05.2025