Börsenquakes and fast recovery: tips for investors in chaos

Börsenquakes and fast recovery: tips for investors in chaos

In August, the financial markets experienced significant turbulence, which for many investors took cause for concern. The big indices, including the S&P 500 and the Dax, had to accept drastic losses. The S&P 500 lost 6.41 percent within a few days, the Dax even 7.71 percent. The MDAX remained relatively stable with a minus of 5.55 percent, but the uncertainty remained among investors.

A central role in these developments played the decisions of prominent investors. Warren Buffett, the well-known CEO of Berkshire Hathaway, sold a large part of his Apple shares, which brought additional nervousness in the markets. Apple is one of the so -called "glorious seven", whose price developments vary greatly in this time. This unrest caused many investors to rethink their strategies and critically question market developments.

global uncertainties and their effects

The situation was not only limited to the USA; There were also significant events in Japan that put the markets under pressure. The interest increases led to the dissolution of so -called "Carry Trades", which caused compulsory sales. This form of credit financing suddenly became risky because investors' collateral was no longer sufficient to secure the loans. The banks had to carry out “Margin Calls”, which meant that shares were quickly sold to minimize potential losses. According to Mathias Beil, these developments increased the volatility of the markets and announced a possible market cleanup.

Despite the challenges, the markets showed remarkable resilience. Already on August 6th, just a few days after the decline, optimism returned. Until August 23, three weeks after the first declines, many indices were back on course and were even above the values ​​of July 31. The DAX recorded an impressive plus of 8.82 percent between August 5 and 23, while the S&P 500 increased by 8.48 percent.

serenity as the key to success

The rapid recovery of the markets illustrates how important it is to keep calm and not to be misleaded by short -term fluctuations. Annex expert Mathias Beil emphasizes that the history often shows that after severe course burglaries, a correction quickly follows. Although worries about the economy could possibly increase again in the coming weeks, Beil investors recommend to adhere to the basic principles: to invest in the long term and to diversify the portfolio broadly.

For many investors, it can be a challenge not to sell directly in times of price losses. Anyone who immediately feels the impulse at the smallest decline in repealing everything may have to rethink their portfolio. It is advisable to pursue a more defensive strategy in order not to miss the positive developments after a market collapse. A risk capacity calculator can help to find the right division of assets for individual needs.