Chief market analyst, explains: investors do in a crisis, always the same error

The Coronavirus continues to be determined by the headlines. But contrary to the media attention the topic gets, it has lost its very great horror for the equit

Chief market analyst, explains: investors do in a crisis, always the same error

The Coronavirus continues to be determined by the headlines. But contrary to the media attention the topic gets, it has lost its very great horror for the equity markets, in spite of the least returned by the Apple sales warning back.

The crisis, which could cause the Coronavirus to the stock exchanges, is reduced in the scenario of a temporary cyclical dip in a possibly already started in the global economic recovery.

Although could take in the coming days and weeks, other companies, the example of Apple and their forecasts lower, but the parent of the investors focus again on the medium to long term, rising earnings expectations, especially for the companies in the United States.

And the tailwind from Wall Street has recently been promoted to the German stock index in new rate regions. Currently, only two percent separating the Index of the next sound wall, the 14,000-mark.

investors to crisis experts

three weeks ago, at the 3. February, the Dax slipped below the mark of 13,000 meters. Who has reduced as investors, on this day, his stock holdings, now has approximately 800 meter higher to see that this was probably a mistake.

Because it is, as always in such crises, investors have a habit of experts for this or that are usually completely foreign topic. You make the match ball for the markets, media coverage and own our own estimates, which can be in any doubt completely wrong.

Professional investors and traders based on the technical analysis and what the stock market is doing and not about what is written in any newspaper about him or in the social media will be discussed. About the author

Jochen Stanzl market analyst at CMC Markets in Frankfurt is one of the chief. His analytical focus is on the combination of technical and fundamental analysis of currencies, commodities, bonds and global stock markets. Daily commented on, discussed and analyzed on CMC TV in the current market events.

Here are contrasts, and it confirms an interesting realization, their consciousness would have preserved some of the investors in the case of other crises to errors. You have to be as an investor in the location, a Position in the stock market to enter then, if the predominant mood is talking about it.

Buy when the mood on the bad

most of The sounds in the first line is contradictory, and then explains the nature of the stock market quite accurately. As the Dax-titled to the to as "black Monday" 3. February put a classic turn on the dance floor, was filled with the media coverage and the sharing in the social media of fear and panic. The Word Cloud in the chart captures the mood quite well. You let this bad mood, you could miss the entry or disconnects at just the wrong Moment of his positions. CMC Markets next generation Word Cloud for media coverage of the mood in the stock markets

the stock market is the future traded

Even if there is still no medication against the Coronavirus was found, expect the investors of the epidemic, only a temporary negative influence on the world economy. Before the outbreak of the Virus, the United States agreed after tough negotiations with China in a first Phase, on the future structure of the trade relations between the two countries.

The improved mood in the economy is now in the economic data. They also show for China, in spite of the Virus in January, a slight upturn. Similarly, the data from the industry and the labour market, we have received recently from the United States confirm, already in this recovery. You make more of your money!

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the end of the profits recession in the United States is the Central theme

More than half of the companies listed in the S&P 500, have their first-quarter figures now published. Even if a small part is still missing – according to the current condition of the profit growth in the last quarter of 2019, at least a black Zero with a slight tendency to a Mini-Plus, compared to the prior-year quarter. With the SCC-exchange of letters next to values, and in the short term and the long term Top return on investment! (Partner quote) Here is an exclusive 30-day free trial!

continuing the positive coverage, would end the profit recession earlier than expected. Yet it was of such a recovery in the current quarter. This is a Surprise, which also explains why the stock markets were able to the Virus so quickly largely re-shake now and again new records are within our grasp.

China's Central Bank as a fire extinguisher

the Chinese stock markets have recovered from their slump at the beginning of the month again. It also plays a role, that the Central Bank is to jump in, to resolve any growth issues. The government in Beijing wants to reduce punitive tariffs on goods imported from the United States. It holds in spite of the level of effort that is currently being operated because of the Virus across the country, to the appointments with the United States. This is a good sign, and also provides for optimism among the investors. DAX 13.664,00 PT. -125,00 (-0,91%) Xetra

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To trigger the rate of data

Dax in the direction of 15,000 points

With the successful soil formation in the Dax by the Virus-hysteria – and the Reach of a new all-time highs, the market has opened in the past few days, the door in much higher regions. The support of 13,381 meters to the end of the month, the Dax with a view to the technical potential to 15.171 points.

see also: guest post by Gabor Steingart - the German lesson for Elon Musk: disgraced In Brandenburg Germany prior to the world

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Date Of Update: 21 February 2020, 09:00