Dusseldorf Nasdaq minus nine percent, Dow Jones minus three and a half and Dax plus/minus zero. That’s the tally since Dec. 27, when global weakness in tech stocks began.
“Investors are expecting the pandemic restrictions to end in the course of the year and are increasingly focusing on stocks with catch-up potential,” says Deutsche Bank’s chief investment strategist, Ulrich Stephan. This refers to so-called “value” shares: valuable share certificates that have underperformed in the past, for example from sectors such as pharmaceuticals, automotive and large parts of traditional industry.
On the other hand, the many highly rated software stocks are doing particularly poorly. The global index MSCI Software has lost 11.2 percent in the past three weeks. This is the strongest correction since the Corona spring crash in 2020. According to Stephan, the sector should remain under pressure in the short term, “although the long-term prospects continue to look bright”.
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