AEX price is falling further, when is it all about?

The AEX race reached a new all-time high of 952 points not long ago. While uncertainty is increasing worldwide, the AEX tries to find a soil, but to date that did not work. There is now a rate of 909 points on the signs.

AEX Course has trouble

The graph below speaks volumes for the AEX. Where of course it was that the 920 points support zone could catch your breath, we saw the Amsterdam stock market index correctly correct yesterday.

That also has to do with the uncertainty about the American economy, where the credit spreads (purple, bottom graph) have increased considerably. Although these are not yet in a dangerous zone, the rising trend is worrying for the American economy, and by extension for the world economy.

Rising credit spreads mean that companies have to pay relatively increasingly higher interest rates to borrow capital than the government. In other words: capital providers see more and more risk in the economy, and want to be compensated with a higher interest rate.

That shows that there is currently a brake on the economy, and usually that is not good for risk investments.

Another Europe

At the same time, we now see another Europe standing up. A few days ago, Ursula von der Leyen, president of the European Commission, announced that Europe wants to invest 800 billion euros in defense.

And yesterday an infrastructure plan of 500 billion euros followed in Germany. While Germany was the best boy in the class for a long time when it came to government spending.

That now seems to change, and perhaps that is what Europe needs. This will be a welcome change for shares, gold, bitcoin and other forms of scarcity.

Part of that capital will have to be created indirectly, because it is unlikely that the market can absorb everything. It is not for nothing that we saw the bonds shoot up in Europe yesterday.

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