Why investors even in the face of deep red, stock exchanges do not panic plugging in should

"A day for the history books," commented a German observer of the market. Other traders languages based on the largest Crash of the Dow Jones in just one day

Why investors even in the face of deep red, stock exchanges do not panic plugging in should

"A day for the history books," commented a German observer of the market. Other traders languages based on the largest Crash of the Dow Jones in just one day of a "black Monday". The fact is: With a minus of 2013, points, the Dow Jones lost so many points in a day like never before. The Dax, in turn, had seen an increase in his fifth-worst day. DAX 10.874,92 PTS. +249,90 (+2,35%) Xetra

  • 1 day
  • 6 months
course data

And all of this is exactly to a day, to fit the bombastic mood it would have been better. Because it was exactly eleven years, the broad S&P 500 went off the market in the U.S. a record-long boom. Instead of a joyful anniversary, nothing ruled as a panic in the markets.

markets fell in an "air hole"

But investors should not forget that the prices quoted a few weeks ago, is still higher than ever before. Thus, an enormous case height, which was also incredibly fast, as the U.S. asset Manager Barry said Ritholtz in just one year, the U.S. market gained 35 percent from its Low at the end of 2018, and an "air hole" created under, so Ritholtz.

in Addition, many investors due to the volatility of the previous weeks already nervous. The unexpected fall in the Oil price sparked a sell-off, the Loss due to this nervousness, as well as through automated trading systems - the "Algos" - and Stop-Order virtually self-accelerated. In the case of the Latter it is the order of additives, the discharge falls Below a threshold automatically the sale of a security.

"Human" was this panic, this does not even necessarily have to be. And more importantly, long-term investors should not let this panic in the first plug. Although yesterday's Crash is not easy to digest, and the Coronavirus epidemic is not yet over, the situation at the same time is not so dramatic as to suggest the movements of the stock market. With Stock Selection in Europe, you will achieve excess Returns with System! (Partner offer) Now 30 days free of charge test!

No comparison to the financial crisis and helpers are at the ready

Because really fundamentally wrong – as it was before the financial crisis, from 2007 – is to the world economy and the markets, just nothing. It also Ritholtz points. Although interrupted supply chains can lead to a recession, is in the opinion of the professionals, no systemic crisis of the economy, the effects of which for years will be noticeably different than in the years 2008 and 2009.

A good Signal, moreover, is as alert and action ready to important decision makers. Trumps hint of a tax relief for US-earner is only a link in a chain of many measures. The Fed has lowered interest rates outside the schedule. The International monetary Fund (IMF) is ready to provide $ 50 billion for the affected emerging countries. And in Germany the Minister for labour Hubertus Heil has reported already to support workers in the event of any loss of earnings cases with a short-time working money.

A bear market is not yet safe

of Course, that does not mean that the markets will take note of all the stands in just a few days old maximum. This is extremely unlikely. However, in a few months or quarters, the losses will be sometimes hardly noticeable. Dow Jones 23.851,02 Pkt. -2.013,76 (-7,79%) OTC

  • 1 day
  • 6 months
course data

This was true even in the real "Black Monday" in October 1987. About a fifth of its value, the Dow Jones lost only one day of trading, far more than the worst days of the great Depression starting in 1929. However, in September 1989, the losses were already up, and shortly after, the Dow Jones continued to Rally, up to the end of the 1990s lasted, and the Index on a three times higher level revoked. 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!

if you invested long-term for the own retirement, has to fear before the panic in the markets, nothing to. Especially since, despite everything, still is not said that investors will now have to sit out a bear market.

In early trading Tuesday, the Dax made a bet back over 3.5 percent. The leading index, which was at around 11,000 points – is also just a little bit higher, would put the Dax is already in bear market territory.

topic:

  • +++ news Ticker to the stock quake +++ - Dow Jones opened with big losses
  • L-type and S-type: Coronavirus is a mutated - this is the Top virologist
  • 278.000 Virus-Dead in Germany, says? As the Top virologist, and his number

panic says on the stock market: asset managers, explains his strategy for the crisis FOCUS Online panic in the stock market: asset managers, explains his strategy for the crisis

Date Of Update: 10 March 2020, 14:00

Yorum yapabilmek için üye girişi yapmanız gerekmektedir.

Üye değilseniz hemen üye olun veya giriş yapın.

NEXT NEWS