The first stock exchange in the quarter of 2020 was one to Forget, although it will go down in the history books. Mid-February marked the Swiss stock index SMI with 11’270 points, a new all-time high. A month later, the benchmark index, reached with 8160 points-to-date low in the Corona-crisis. In between is a huge value destruction, and a loss Rate of over 25 percent.
For Anastassios Frangulidis (51) has. the stock market crash not only a historical Dimension, but also a unique cause”This is a new in this time of crisis, the services sector is affected by the Coronavirus is very strong. Maybe even more than the industry,” says Frangulidis, at Pictet Asset Management responsible for the administration of the funds of Swiss institutional clients. Thus, the damping effect of the service sector undermined, for, as you know from previous crises.
The dancing bear more
in the Meantime, however, the courses have not only in Switzerland, but also globally have recovered somewhat. The SMI has become far removed from the Corona-Deep, has risen since then, 16 per cent in value. Has digested the stock market, the crisis already?
“The first shock has settled with the investors. The approved state aid packages have fuelled the hope that the economic crash is indeed fierce, but slightly cushioned, it can be,” said Thomas Stucki (56), chief Investment officer of St. Galler Kantonalbank.
However, the dance of the bears could go on the stock exchanges at any time. The bear is in the stock Exchange, the Symbol of falling prices. “For an all-clear, it is still too early,” says Stucki. “The stock markets, the worst scenarios are not arrived to reflect currently the relief that so far.” Now to are in Switzerland and other countries soon, the first locker. The was generally positive, says Stucki. But the frustration potential is big, should delay “the loosening, or even to new closures”. Frustration in exchange-dealers results in a further sell-off in the shares.
uncertainty remains high
For Christian Gattiker (51), chief strategist at Bank Julius Baer, have not checked the stock markets, the crisis. “The stock exchanges only say: The worst is soon behind us. On this evaluation you can come back at any time, when reality is suddenly different.” Gattiker has wanted to sell an explanation for the decline in the markets was at the end of March for the First pass: “Who or had to, had already been sold before. That was the reason for the soil formation.”
This means: at the end of March, the panic sellers and liquidity were shot viewfinder shot. Not exactly the Basis for a large comeback on the stock exchanges. Skeptical also Frangulidis is, because the uncertainty remains – and is often a poison for the markets: “the recovery in the markets can be considered sustainable, we would need an even clearer sign of the stabilization of the current health situation of exception.” In addition, nobody could estimate the exact economic damage, says the Pictet-man.
The investors can now do
How to behave now, investors in such an exceptional situation on the Stock market? Eyes, the tip of Frangulidis: “It is important that investors keep in such times of high volatility in the long term with a defined investment strategy.” Also Gattiker urged to Sit out of the crisis: “those Who try, the output of the pandemic predict, does not need any investment recommendation. All other we recommend not to play the hero.” This means that the right time to enter miss anyway most of all – and the point to get Off is already long gone.
Also Stucki recommends that, for the first time to keep quiet: “The rate fluctuations are still large. To try this in the short term, to exploit, is difficult.” However, not can damage looking Think: “investors should adjust their Portfolio to the time after the Corona-crisis. This means, in the case of strong price declines, you could buy one or the other title for this: “you need to focus on the stocks of companies whose business suffers from the Corona-crisis so strong, or the rest after the end of the crisis quickly.”
The Coronavirus currently holds the world in suspense. Many countries are taking measures such as Closing schools or limiting public events, to prevent the spread. In Switzerland, too, the grass, the Virus magnetized. All of the current information and Figures around the topic there is in the Coronavirus-Ticker.
I Have the corona virus or just the flu?
The Coronavirus spreads further – also in Switzerland. Especially in the flu season, you can assess for yourself whether one is ill with the Coronavirus, or whether you just have an ordinary flu. The differences are subtle, but they exist. VIEWS is defined.
protection against Coronavirus
recommendations of the Federal office for health, how you can protect yourself:
wash your hands: Wash your hands regularly with soap and water or use a Hand sanitizer. Don’t sneeze, you Sneeze into the hands, or cough in a handkerchief; or if you have none, in the bend of your elbow. Handkerchiefs to dispose of properly: paper towels, should be disposed of after use in a closed waste bin. You stay in fever and cough necessarily at home.
Stay home and avoid wherever possible contact with people. You go only in the following exceptional situations, out of the house: the food doctor shopping or pharmacy visit / the home office is for your job not possible / you have to help other people. You keep if possible 2 meters distance to your fellow human beings, for example, in a line or at meetings. Avoid contact with people breathing or have a cough. You avoid public transport. You can be all that is possible to home deliver. Important: No welcome kiss, no hugs, no shaking hands.
Note the local instructions and recommendations. Strictly to the rules and announcements of the authorities. Infoline Coronavirus: 058 463 00 00, 24 hours a day available Info-page of the BAG: bag-coronavirus.
when should the ch one to the doctor?
do not Go out in the symptoms (difficulty breathing, cough, or fever) in the Public and contact you immediately – first by phone, a Doctor, a doctor or a health care facility.
remains The Situation until Further notice. The Federal government informed in regular intervals about the current developments. It applies now more than ever: peace and quiet preserved, and the thing in common to serve.