it All began in the city of Wuhan in the Chinese province of Hubei. The Coronavirus broke out for the first Time. The Chinese government acted quickly and paralysed large parts of China due to quarantine measures. Many millions of people were forced leave granted and had to stay at home. To date, it is lacking in Restaurants, shops and businesses of work forces. The consequences of no consumption and no production. About the author
Ingo Schröder is a financial expert and an independent fee consultant. He is a partner and managing Director at maiwerk financial partners, a consulting company for private financial planning in Cologne.
The Coronavirus affects not only the economy in China, because in the meantime, some of the global supply chains interrupted. The financial markets price in the future and not the present.
This means that The prospect of further quarantine measures, which could not only cause China's economic damage, influenced the course the amount. The current sharp price decline can be explained, because as the Coronavirus with full force in Italy and in Europe, arrived. Cooked, however, the fear is high that it will come not only in China but all over the world to quarantine measures, and thus economic stagnation would use.investors pull back
Many investors are withdrawing from the markets, because they fear that the Coronavirus, the economy will be further weakened and the profit forecasts of the company be diminished. It is in the truest sense of the word, to fear of recession with serious consequences: The stock exchanges, way bag. If Dax, Dow or MSCI – all recorded heavy losses. If you look at the global Index MSCI World (see chart below), you can also see the "Corona effect". In the past few months, the world Index rose further and further, and highly celebrated a few weeks ago, still an all-time high. Now he broke into a few days to significantly more than 10 percent. Morningstar Direct
the development of the MSCI World
diseases and epidemics, however, are nothing New and, therefore, it is worthwhile to take a look at past epidemics and their impact on the financial markets (see chart below).
MSCI World Index
of the epidemics and their impact on financial markets
In the case of diseases and epidemics in the past, it can be observed that the market corrections were mostly relatively short and relatively superficial. If you look at, for example, in the course of the infectious disease SARS in Particular (see graphic below), we can see that the Index with other infections fell in March of 2003, but in the following months, quickly recovered, as the Situation improved. Important for your financial investment: The courses will recover very probably also to the current epidemic. Morningstar Direct
Auswirkungvon SARS on the MSCI Worldthe Potential impact of the Coronavirus
in the Short term (2020): is How the situation specifically in the financial markets?
The first half of the year will be marked by uncertainty, because nobody knows the actual impact. It is questionable, among other things, how the Coronavirus is more common. Companies issued profit warnings. If the Virus is slowing, to be licked "wounds". Specifically, this means that Central banks cheap money and financial injection to support the economy, notably the Fed, China, the ECB and the Bank of Japan.
the fear may be that some of the countries slipping back into recession, it was also without the Coronavirus by the trade dispute ever. Problems could aggravate in the short term.
in the medium term to long term: How will it go further?
As with other crashes have been triggered in the past, regardless of epidemics, will recover the capital markets in the medium to long term. Supply chains will take place in the world, companies reduce costs. Thus, you will go in the long term emerge from such crises. The courses move in the long term, even after such epidemics according to the above, we see also further above in the graphic.6 tips for investors:
keep fluctuate The prices on the stock exchanges and are likely to get in the basement. This may, in fact, uneasy. It now looks to be the Depot, and sees, for example, a "theoretical" loss of 25 percent, you might get a fear of losing everything Saved. Now, it is important that this fear of loss, no panic. Instead, the Maxim is: keep calm!
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know It is important that you know your risk appetite, in order to align its investment decision, and also in times of crisis it can hold. With the risk appetite, a psychologically proven stable personality trait, which is based on experiences and decisions with money. It reflects exactly which losses you can tolerate and the other way around, what gains you can expect.
think This holds even in difficult times to its investment decision, it is also of immense importance that you have not defined a time-defined investment period, the man changed. You should stick to a Plan, think long term and not driven by emotion.
4. No market timing run
savings plans pull
You should not summon the "perfect time" up, but the savings plans that you had previously, continue to pull through. Can increase you like, but you should not take the Saved from the Depot down.
make one-time investment, not
move a Planned one-off investments, you should not move for an indefinite period of time. If it is, but according to its own estimates, is now at risk, the saved 100,000 euros once create, you should distribute the amount to different points in time - the best over a period of three to six months.
5. Buy - also on three to six months
In the case of falling, deep courses distributed you should buy. You can also buy more rooms at different time, the best of three to six months. At the conclusion of the sale to beats as well and secures good discounts, why not the market? Not for nothing is an old stock market saying of wisdom: "Buy when the cannons thunder."
Although it is the tire right now seductive appears to be feeding, you should keep the pre-determined investment period necessarily! Stringent Action will lead to a higher probability to be objective.
So: take a breath, and the legs still hold the best for a whole year. Then we heard about that, hopefully, health and the depot moderately unaware of the negative consequences and everything is back in order.conclusion
By the Coronavirus and its (short-term) impact on the economy should not drive you crazy. It is important to keep calm, to think long-term and to remain the own investment strategy.
see also: stock market psychology - be aware of these five stages of the Corona-panic – in order to protect your money real-time map shows the Corona-dissemination - more than 45,000 people were being healed, again, FOCUS Online/Wochit lung disease Covid-19: real-time map of the Corona-dissemination - more than 45,000 people shows a re-healedDate Of Update: 07 March 2020, 11:00