There are rules of the stock exchanges. Rules that have always existed, and of whose validity there are almost no exceptions. One of these rules is that whenever the mass of the (rather inexperienced) investors discovered a new form of investment, it will crash, this form of investment, and in a way, by which many of these investors separate themselves from this form of investment with significant losses.

it was with Bitcoin so the Gold Rally a few years earlier, the technology to bubble up to the Millennium, and there are innumerable other examples which go far back in the history of the stock market.

both ETFs as well as ETF-savings plans will be on view from 15 to 20 years is a very good idea without question. But there was in the past years, an incredible ETF, and spar plan-Boom that continues to this day. And so I asked myself again and again the question: What needs to happen to exit this ETF Boom, at least for a time?

About the author

Sven way house Trader, Analyst and editor-in-chief in the case of stock market portal, stock street. In 1999, he developed a great interest for the areas of economy and Finance and, in Particular, for the stock market trading. In addition to the fundamental data, it also involves technical aspects as well as approaches to sentiment theory in his analysis.

As with so many Booms, you must reckon always with an unexpected and unpredictable event. The stock market refers to such events as "black Swan". Since you can't see it before, it makes no sense to deal in advance with it.

But now we have a possible black Swan for the exchanges: a global pandemic. Of course, not really sure, what are the effects of the Corona-Virus is finally have. But let us imagine a Worst-Case scenario: The Virus is spreading more and more to a standstill for months, the economic and social life throughout the world, more or less.

the majority of companies will lead to such a development through the direct or indirect effects to significant loss of revenue. Many companies will do this even at a loss. And the are priced in the stock exchanges of falling prices. The panic feeds panic. And as is expected with Excesses – you know the.

As we have just experienced one of the longest rallies of the stock exchange of stories, is also likely to be without the Corona Virus with a stronger consolidation. If this consolidation but with an extreme event, would be Extraordinary a burglary, for example, 50 percent of nothing is really. This has been tried often. So – what if the DAX would be at once at 7,000 points and lower?

The ETF, and spar plan-Boom was formed by the year-long Rally. This is the great part of the investor will be entered but only in the last five years, as the courses had been a large part of the Rally. Many of the investors who have joined the Rally for the first time about ETFs in the market, so they have never experienced greater price declines. And all of those who recommend savings plans, emphasize again and again that you have to hold, no matter what happens. And also most of these investors know. So far so good.

But is what many of these investors experienced how it feels when the prices drop further and further. At the beginning of it: "I think no matter what happens, I'll never sell!!!" However, the further that the accumulated assets will collapse in on itself, the more nervous investors are. Finally, thousands or even tens of dissolve because of thousands of euros just in the air.

accumulated When about a third of the wealth is gone – which is likely to be in newer savings plans be the case if the DAX would be at 9,000 to 10,000 points – many investors are highly nervous and insecure, almost on a daily basis in your vault view. And here is something begins in the minds of investors, which is only grown with a lot of experience:

nervousness, fear and panic take over the helm. And these States of mind obtained by the daily news flood to the course development and the development of the pandemic is always more food. The messages are also always so, with further courses becoming darker and darker. At some point only to Horror scenarios are described that will shake even the most hardened of investors, and cook until soft.

Because, after all, fear and panic lead to the "field of view" narrowed. The rational processes in the mind are superseded and of instinctive behavior patterns to be replaced. And even if one has already resigned, the grueling descent: You just want to see every day again next fall and see how the losses are bigger and bigger. You will not want to torment you every day with the question of why it has not sold. Day-to-day frustration, fear, Horror. And the exchange with the usually brief euphoria, if small, course launch recreations or positive messages, new hopes emerge. This Back and Forth makes every good intention a small heap of misery. And quickly forget that you never wanted to sell, no matter what happens, because this Time everything is different. A sentence, by the way, hear in a long crisis at some point.

If at the same time the social life that comes through the Corona Virus to a Standstill, it creates an additional emotional burden. And so what has to happen happens: The investor prefers the Rice line and sold simply to escape the daily pressure, or to save what can be saved. Interestingly, this happens often in the case of many investors at the same time, so that there is the well-known panic days where the prices fall almost vertically unlimited. And, wonder who it is, most of these sales also indicate the end of a Rally.

as a result of such emotions caused total sales is the Dumbest thing you can do. It would be more appropriate in this Situation to buy. And then, if you sell all-in-one yells, finally. But for that you have to withdraw and re-engage our minds:

Finally, you can get in the low points of such crises, what we want to have all of the time, namely shares, usually very, very cheap – at least cheaper than all the years before.

Here is the main principle of long-term investment is therefore: Sell expensive, buy cheap. If the ratings are low, get in, if they are expensive, get out. And the best time for an entry is given if the courses are transferred after a big consolidation in the panic mode and are we sure that now everything is collapsing.

But to enter in such situations, the only to create the Hard-nosed, as always. The experienced investors are buying in these situations, the inexperienced investors of their shares. And, as if by a miracle solution to these panic-on days, the problems in the air, the crises lose their importance and a few months later, vain sunshine reigns again on the stock exchanges and the new Rally is running...

It is important to understand these relationships, especially when you have so much experience. Then you might have a Chance, not to let themselves be guided by emotions, but to remain objective and finally, the prices of each and every Crash of the past 150 years of recovery!

so let's Wait, whether the Corona Virus will develop actually a Deal-Breaker for ETF savings plans. I hope not. I also hope that a major pandemic could be prevented – for all of us – because when it comes to health, are stock prices finally completely insignificant.