As the saying goes, no one rings a bell at the top of the market. This well-known saying is certainly true. The reasons put forward for the correction seem somewhat far-fetched from our point of view; after all, rising interest rates and the trade conflict between the USA and China, in particular, have been talking points for months. Rather, it seems to us that after years of rising prices, the market was overpriced and overbought, and the mood among investors was over-optimistic.
The sharp correction of the past few months did a lot of damage, especially in technical terms. Over the following pages, we explain why we first expect a significant countertrend rally before the stock markets continue their correction in 2019. Thus we recommend a highly defensive investment policy.