We’re in a bear market. This is displace in accordance with the most recent Dax-crash to Christmas and investors will employ for quite a while. So that you know what expression is behind the Insider, and what are the consequences, we answer the most important questions.
1. What is the Dax has to do a crash with a bear?
the Two animals are mentioned in connection with the stock exchange: The bull and the bear. The a stands for rising, the other for falling prices. At the same time, you also refer to types of Investors. Who sets an optimistic view of rising prices – a Warren Buffett, for example – is a COP, who is expected to be pessimistic is always the fall – such as Marc Faber would be a bear.
The animal names are almost as old as the stock exchange itself. You come from one of the first books to the money system, the 1688 by a Spaniard, Don Joseph de la Vega wrote of the “confusion of confusions”. In it, he compared the stock market with a to the usual battle between a bull and a bear. The former fights, he pushes with the horns from the bottom to the top, the latter, by einhaut with its paw from above on the opponent.
2. What is a bear market then?
in General case, apply the end of the courses as “bearish”. To refer to but the whole stock market so that it must are already worse than a few lost days in the Dax. There is no fixed Definition of what constitutes a bear market. Generally speaking, stock traders talk, but if several large indices of more than 20 per cent below their last High.
The now has happened at Christmas. The Dax currently stands at approximately 10.420 points, which are 23.2 percent less than the year’s high of 13.559 points from January. The Euro STOXX fights with 19.8 percent as against the brand as the American S&P 500 (so far minus 17.8 percent).
DAX 10.558 out of 96 PTS. +To propose 177,45 (+1,71%) Xetra
- 1 day
- 6 months
the course data In the case of such a loss, the mood on the stock market most durable. Professionals as well as small investors become more cautious and buy shares in great styles such as maybe before. This prevents that the courses can recover quickly. A bear market is not, therefore, only a single stock market crash, but a prolonged period of pessimism.
3. How long a bear market lasts?
A look into the history of the Dax index and its precursor indices shows that since 1960 to twelve bear markets in Germany. On average, it took 252 days, until the Index mark 20 percent loss. In the current case were from the High on 23. January to to the magical threshold on the 17. December 328 days, which is significantly more than usual.
So it remains to hope that the rise of succeed faster. On average, the Dax reached its old peak again in 559 days after the last High. This would be in the present case, the 5. August 2019.
4. How often such bear markets?
In Germany, there was, as already mentioned, twelve bear markets. The first lasted from 6. September 1960 to 24. October 1962. The shortest of the Asian crisis of 1998, the Dax recovered after 80 days, the longest of which lasted between 1964 and 1967, a total of 868 days.
The weakest scraped in 1992, the 20-percent-loss of brand, the most violent, the dot-com bubble of 2002, the German share to 59,67% buckling.
All messages to the stock exchange to find out now at Finanzen100 In the United States, since 1900, been 32 bear markets. You take an average of 367 days go by so faster than in Germany. But this must mean for the current case a little, since the US generally have a very different stock market history.
5. How far it can still go down?
packages can’t answer. As shown above, the margin of the losses in a bear market, in Germany, between 23 and 60 percent. The average is about 40 percent, which would mean that the Dax would have to fall up to 8.135 points.
However, such reserves shock, always global crises, such as the 2008 financial crisis, the Dotcom bubble in 2000 and 2002, or the “Black Thursday” of 1987, when the courses in one day by more than 20 percent fell. Such epoch-making events, we have not seen before.
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6. What should I do as an investor now?
The most Important thing, if you currently own shares or the thoughts have played, what to buy: don’t be in a panic. All bear markets are so far gone and there is no reason to believe that it is different this time. So not hectic, the Portfolio is empty, but also please do not indiscriminately buy stocks, because they are now supposedly cheap.
Instead, you should do the same as always: Analyze the stocks in your Portfolio or those you want to buy. The fundamental data of the respective corporations? You increase your turnover, profits? You are over-indebted hopeless or their liquidity is at risk? Pay dividends? The current share price is too low or too high for what the company makes?
If the voices of a share underlying data, then you need not to Worry. The rate will then increase accordingly, as soon as the bear market is over. Take the crisis so dear to the occasion, to check their stock once again thoroughly – and sell them only then, if the hope for improvement of the business data is low.
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In the FOCUS Online/Wochit retirement at 45: to use the early departure from the profession csa bear market stock market stock market knowledge financial crisis, the DAX, life