These seven graphs show the risks to the US stock market

Wall Street

The S&P 500 is clearly overrepresented in the global MSCI-World stock market index.

(Photo: AP)

Düsseldorf, Frankfurt US stocks once again set the trend in the past year. However, if the US Federal Reserve implements its monetary policy turnaround, you will also be exposed to particular risks. Because the courses have lived on their support for a long time.

It is therefore worthwhile to take a closer look at the specific risks of the US S&P 500 index. It is important to note that this index is clearly overrepresented in the global MSCI-World stock market index. Both indices are highly correlated, so they develop very similarly – also because the markets around the world mostly follow the guidelines from the USA.

Anyone who pursues the very sensible simple strategy of buying an exchange-traded fund (ETF) on the MSCI World for their stock portfolio should therefore also take a good look at the risks. It is also important, however, that these are risks, not predictions of price drops. It would therefore be wrong to forego stocks as an investment because of these risks, because the alternatives are still not very edifying.

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