Bad numbers are punished with bad exchange rates

lessons from the past

Handelsblatt editor Jürgen Röder puts the current price development in relation to past stock market phases.

(Photo: Getty Images)

Frankfurt What do the major crashes on the German stock market, such as the bursting of the technology bubble, the major financial crisis and the corona crisis, have in common? They always reached their lowest point in mid-March.

However, if you wait four and a half months to get started and then hope for big profits, you are likely to be wrong. For one thing, the timing of a crash low says nothing about the duration of the bear market. The price slide at the beginning of the millennium lasted more than three years, the corona crash ended within a few weeks.

And on the other hand, it is not clear whether the current bear market is at all comparable with the other three crashes. The maximum drop in 2022 is 27 percent, well below the other crashes, which were between 40 and 70 percent.

>> Read here: This is how you invest your money in 2022 in a crisis-proof manner

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