Time to get started: Before the current correction, there were many warnings of a crash
Comparatively harmless to the sell-off on the US stock exchanges, where the US leading index Dow Jones went out of trading with a minus of 4.6 percent at 24,345.75 points.
“” Many investors have fallen into a real panic, “commented stock market expert Thomas Altmann from the investment house QC Partners. “What is happening today can be described as a crash.” “Daniel Saurenz from the analysis company Feingold Research does not see it that black. We did not experience a “” Black Monday “” but a “” dark gray Monday “”.
After the initial panic, it was clear: German investors are keeping their nerve. Martin Utschneider from the private bank Donner Reuschel spoke of “” irrational movements “”. The overall upward movement of the DAX since 2009 is still intact. So just a correction and not a harbinger of a global stock market crash?
Why did the share price fall?
Fears of inflation: Wage growth in the US was stronger than expected. Good news for Americans. Bad news for inflation. It is feared that the US Federal Reserve will raise interest rates in order to dampen price increases. But that in turn makes money and credit more expensive and inhibits growth. Higher interest costs and rising wages reduce the company’s profit development.
Trading on autopilot: A large part of the financial markets is now controlled by computer programs and virtually on autopilot. That means: If certain price marks are broken, an automated sales process begins, in which important thresholds are broken down again. This sets off a selling spiral that intensifies the price decline. In this case one speaks of a “” Flash Crash “”. Even with the current price slide, the computer-controlled and independent sale of shares with simultaneous purchase of government bonds could be observed.
Few companies ensure a lot of movement: the various stock exchanges are increasingly becoming imbalanced. A large part of the profits on the US technology exchange NASDAQ, for example, is distributed among Apple, Alphabet, Amazon, Facebook and Microsoft. That is 0.2 percent of the companies represented in the index and makes them more susceptible to fluctuations, emphasizes economic expert Daniel Stelter.
World of stock exchanges, world of stock exchanges: The global stock exchanges do not stand alone. Developments on the US stock exchanges are also reflected in the German, European, Asian, etc. markets – sometimes more, sometimes less. A strong pre-market sell-off in the DAX was also observed today as a reaction to the price slide in the USA, which, however, eased after the stock market launch.
How should investors behave now?
Sitting out setbacks: Those who do not depend on their equity assets can get over the correction. Investors with a long investment horizon can simply sit out setbacks. In the long term, stocks tend to develop positively, as a look at the return triangle of the Deutsches Aktien-Institut shows. For an investment period of 20 years, the annual returns on the DAX averaged around nine percent in the past. Investors did not have to fear losses over such periods.
Take profits: For a long time, the stock markets were almost exclusively up. But the prices on the stock exchanges do not always develop in one direction. The stock market lives from ups and downs. Those who have already invested for a long time can still look forward to profits with the current setback and now take them with them.
Time to get started: Before the current correction, there were many warnings of a crash. Shareholders can now seize the opportunity and get in or buy more at cheaper prices. The trick is to find the right course. Wait any longer or get in? Everyone has to decide for themselves.
Will the shift to “” Safe Haven “” follow?college essay about community service
If share prices fall, investments in so-called “safe havens” such as gold or bonds rise. And that, in turn, has to do with interest rates. In other words, central banks are trying to curb rising prices by increasing interest rates. This alarms equity investors looking for other investment opportunities. The hunt for returns is shifting. We have seen the opposite trend over the past few years. Low central bank interest rates prepared the ground for the equity rally in recent years.
Gold: The gold price, a popular means of hedging against higher inflation, has so far only increased moderately. An indication that the fears of higher inflation are limited.
Bonds: After strong demand pushed the prices of ten-year Bunds down, for example, the situation on the German bond market has calmed down noticeably.
Concrete gold: The prices on the real estate markets do not react immediately to stock market movements. However, the prices for building land and real estate rise when investors do not expect any returns on the interest rate markets. In times of persistently low interest rates, many investors ask themselves: what to do with the money? The answer: stocks and real estate. Conversely, falling share prices and rising bond prices could also relax the overheated real estate market.
But no end to the bull market?
So it’s all just a brief panic that vanishes again? Investors who have only been on the stock exchange for a few years have not yet experienced a price slide like this live. This can be unsettling and lead to panic reactions. The stock market barometer has been pointing up since 2009. In 2017 alone, the DAX rose by 12.5 percent. That can pamper you and sometimes blind you.
Crash prophets have been scratching their feet for a long time. For them, the upswing on the stock exchanges has been taking too long. There is talk of overvaluation of companies, driven by carelessness on the part of investors. This is also reflected in the volatility – an indicator of the nervousness on the markets. This has decreased significantly in the last few years, emphasizes Stelter. At the same time, bets on a further decline in volatility increased. This, according to Stelter, conjures up memories of the credit default insurance crisis that marked the beginning of the last global economic crisis.
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Another problem is the artificial maintenance of share prices by companies. They buy their own shares on credit to increase the return on equity in order to drive up the price on the stock exchanges. According to Stelter, almost every tenth company can no longer make its interest payments from current profits – not to mention the purchases of shares on credit by many private investors. That doesn’t suggest anything good.
Sources used: dpa-AFX Reuters own research beyond the obious, show more sources, less sources
Veitshöchheim (dpa / tmn) – The lovage seedlings are spread all over the garden. The seeds can sprout well and grow into plants, especially on loose sandy soil, but also in the joints of paths.
The Bavarian Garden Academy recommends that those who want to transfer the reseeding to a vegetable or herb bed should salvage the small plants after a few rainy days. First you should put them in pots with potting soil and put them in the bed in the spring, when the soil is still moist after rainy days.
A 20-year-old stays in Baden-Württemberg on Friday evening with his electric bike. He tries to continue on foot. The next day he is found dead by local residents.
Residents in the Schwäbisch Hall district (Baden-Württemberg) found a dead 20-year-old who was probably frozen to death. This was the result of initial investigations. As the public prosecutor and the police announced on Sunday, the young man was in Kirchberg an der Jagst on Friday evening and then probably set off on an electric bike in the direction of Schwäbisch Hall. The battery ran out during the journey, so he continued on foot.
According to the information, the 20-year-old came only a few kilometers to the outskirts of Wolpertshausen. There he was most likely frozen to death because of the low temperatures. The German Weather Service (DWD) had predicted lows of up to minus seven degrees in the southwest for Saturday night.
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The residents had found the dead on Saturday morning. According to a police spokesman, further details were initially unclear. A third party influence has so far been excluded, it said.
Sources used: dpa news agency
After the late summer weather in Germany, autumn is now coming again. There is more rain, fog and temperatures drop significantly. There is even a risk of frost.
Record-breaking temperatures on Monday, significantly cooler from Tuesday: The weather is now quickly becoming autumnal, as the German Weather Service (DWD) predicted on Monday in Offenbach. At the start of the week, the former hurricane “” Zeta “” shoveled extremely mild air masses from Spain to Germany. According to the DWD, the night on Monday was “record mild”: Bad Neuenahr-Ahrweiler in Rhineland-Palatinate had the highest minimum temperature of 17.5 degrees.
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During the day, regional temperature records of up to 25 degrees were expected in the southwest. The Germany-wide record of 25.9 degrees for November in Rosenheim, Bavaria, will probably not be exceeded, the DWD said on Monday afternoon.
Fog and cold
On Tuesday, however, the late summer temperatures are over: with a cold front from the west, the mild subtropical air is pushed to the eastern edge of the Alps and replaced by cooler sea air, as meteorologist Robert Hausen from the weather forecast center explained. “” This spreads across the country in batches by the middle of the week, so that the maximum values during the day are usually only around 10 degrees. “”
Hoch “” Ramesh “” comes to Germany from the Atlantic. “” This increases the tendency towards fog and high fog, typical of the season. Especially in low mountain valleys there is an increased risk of frost as soon as the night sky remains clear for a longer period of time. That is how fast it can go from 25 degrees to below 0 degrees in November. “”
Sources used: dpa news agency
The golden autumn is still a long way off: It is getting warmer, but it is also raining. Improvement is only in sight for Saturday.
Clouds, rain and wind will spoil a golden October in many places in Germany in the coming days. However, the temperatures are quite high and even crack the 20 degree mark, as reported by the German Weather Service. The nights also remain mild. An improvement in the weather is in sight for Saturday.
Thursday starts nicely
Thursday starts friendly in the southeast half, otherwise the sky is cloudy. From the west to the middle of Germany shower-like rain spreads. The temperatures in the north are 15 to 20 degrees, there the wind blows strongly. For the rest of Germany, values between 18 and 22 degrees are expected. During the night they drop to 7 to 13 degrees.
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Friday also starts with lots of clouds, later they loosen up in the south-east and north. Especially in the south-west and west, rain falls again and again, and thunderstorms are also possible. At 14 to 19 degrees it gets a little cooler.
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Saturday also begins with a gray sky and a few showers, but improvement is in sight: During the day, with temperatures similar to the day before, it will be friendly, especially in the south, and the precipitation will subside.
Sources used: dpa news agency
The result of the French presidential election makes investors cheer. Internationally, the stock markets are increasing significantly. The German share index even jumped to a new all-time high.
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The French nightmare for stock marketers has not come true: After the success of the pro-European politician Emmanuel Macron in the first round of the presidential election in France, the Dax cracked a new record on Monday. The leading German index jumped 2.9 percent to an all-time high of 12,398.05 points. French stocks and the euro also made strong gains.
Brokers had feared that only the euro opponents Marine Le Pen and her left-wing opponent Jean-Luc Melenchon make it into the runoff election. “” After this result I would say: Vive la France, long live Europe. And European stocks “”, said the chief investment strategist of Deutsche Asset Management, Stefan Kreuzkamp.
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