infections are up, rates down – for weeks, this correlation was considered. By the Coronavirus pandemic, the Dax fell more rapidly than ever before in bear market territory. The Same was true for the US indices Dow Jones and S&P 500. In the meantime, the valley seems to be by steps.
From his record, the Dax has lost to the low point of 40.2 percent. This loss has curbed now to 23.8 percent, and from the Deep out, it was 27.4 percent, according to the top – who has taken advantage of this volatility perfectly, has made in just a few weeks more percent than the Dax in the excellent stock market year 2019. DAX 10.332,89 PTS. -23,81 (-0,23%) Xetra
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To increase the rate of data
the infections more. In a very short time, the number of Infected has exploded in the United States, and in spite of the measures are also in place in Germany, more new infections, although the daily growth decreases. So why the stock markets shoot up again?
US private investors are more confident than ever
A simple reason: With the global economic stimulus programmes in the trillions of dollars the prospects of the company for the coming quarters and years will change again. Although the gains are not likely to grow as without Corona-crisis, however, definitely better than without the economic Stimulation. Means: investors feed their models with new data and adjust the prices accordingly.
opportunistic bargain hunters Add to that, of course. In the USA, for example, the consumer can expect on average with a probability of 48% higher stock prices in the twelve months, as a recent survey the New York Federal Reserve revealed – a new record since the beginning of the data collection in 2013. Exclusive exchanges Webinar
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at the same time, U.S. consumers estimate the likelihood to lose in the next twelve months on the Job, with 18.5 percent. This is also a record value in the survey. Too rosy, the prospects of the Americans are not so. And (marginally) higher share prices in a year would be after such a price decline is no Surprise.
“The road to normality is not easy,”
experts see the situation more sceptical. “No one wants to miss the soil formation and later on the bandwagon to jump on. The investors know only too well from the years ago, when the bull market had no Hold. Whether your optimism is rewarded, however, in this case, is only likely to show in the coming weeks“, commented chief analyst Jochen Stanzl from the Broker CMC Markets. After Stanzls view, the market has stabilized but only just only.
Also, Natixis, market strategist Esty Dwek looks too much Exuberance: “The markets under-estimate currently that the containment of the Covid 19-Virus take a long time, and the road back to normalcy will not be easy.” Therefore, the realization that the economy is recovering but slower-than-expected could provide, once again, for the setbacks, as Dwek.
volatility indices attest to the skepticism of the markets
Also, the view on the volatility of the indices shows that investors should not weigh more in security. The VDax-New listed still at just under 43 points – well below his usual level of between 10 and 20 meters. The index level indicates a range of fluctuation of approximately 1300 points in both directions in the next 30 days. Similar to the height of the American VDax-counterpart, the VIX recorded.
The two indexes are based on prices for options on the Dax and the S&P 500 with the futures contracts, investors are speculating turns on large Price or hedge your portfolio. High volatility indices point to relatively unsettled investors. Not really sure the pros in the case of current stabilization are not so still. Learn from the Best
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What investors remains to be done
So the question remains, how investors should behave. Natixis-expert Dwek calls in any case for caution: “A sustainable recovery in the markets is in need of continued positive news and momentum. Given the numerous, more of the existing question mark, it seems too early.“
On the other hand, is it true that perfect Timing is in any case difficult to achieve. The risk of missed returns if savers over extended periods of time to be invested, weighs far heavier than the fear of another setback. Anyone who has invests for the pension, and until then, at least 15 to 20 years, could be reassured to build up positions. An ETF savings plan in the world index, the MSCI World for the beginning. Small Caps Champion: your 3 pillars for a successful wealth accumulation. Successfully and safely in addition to values invest. (Partner quote) Here is an exclusive free trial!
Who, however, shortly before the retirement, and now with the thought of toying to zoom in on the assets of the alleged recovery of the markets once again, you should be careful. It is as good as impossible that the exchanges fix the Crash-never again– but it takes time.
After the great financial crisis, the Dax needed a little more than four years old levels of reclaim and also in this period, it came to coasters Back. The closer the entry moves into retirement, the more conservative investors should act on the preservation of the earned capital to focus, instead, yields chasing after.
As commented on the FOCUS Online readers of this post:
“Sorry, it seems that the traders know where the journey goes?I didn’t understand it yet. No one knows how many companies there are, let alone who is after this Crash still there. The money is to be applied for large funds at the Moment, cheaper in the shares as at the ECB. Certainly not is actually whether it is the Euro and the ECB after the crisis. Nicely, then we are investing in a future without certainty of how it looks. One thing is clear for me today: This statement must be distributed to all. Italy, Spain, Greece even before the crisis broke, now we are going to be there also. Europe will soon be history and the Euro is not our currency.”
“I have a very long time for a small securities account. It is well-risen and brought income.So I was on the books richer. Now it is red,and still brings in income. So I’m not “on the books” poorer. Unfortunately, the Alternatives are not Alternatives.The price of real estate in the city were a pale, bonds and negative interest rates are also not useful. You should be in the middle of nowhere a property will sell, not happy. In addition, expropriation-esque also would like to tax the personal best. The solos, by the way, for distributions beyond the free amount of securities not to be abolished. Realized losses when shares are private vergnüngen and can only be used with the Stock offset against the profits.”
on The topic:stock market millionaire Beate Sanders helps more – so take advantage of the Crash to the accumulation of capital “Mr. Dax” Dirk Müller: How investors are now the Best of the Situation, FOCUS Online, “Mr. Dax” Dirk Müller: How investors can make the Best out of the Situation not “Know whether this is Serious”: Laschet drives Hayali in the ZDF-Interview, FOCUS Online/Wochit “don’t Know if this is Serious”: Laschet drives Hayali in the ZDF-Interview