Dusseldorf Investors need strong nerves at the moment. Whether it’s the Dax, S&P 500 or the Dow Jones: Almost all major stock indices have fallen by an average of 20 percent since their highs. In technical jargon one speaks of a bear market. In such an environment, the standards by which analysts classify equities as worth buying change.
Compared to normal times on the stock market, the price-earnings ratio (P/E), for example, is less meaningful and can even mislead hasty investors. Instead, companies’ net debt, interest coverage ratio, cash flow and book value, and dividends are gaining in importance.
Financial correspondent Andrea Cunnen explains why this is the case and how investors can work with these indicators. In an interview with host Lena Jesberg in this episode of Handelsblatt-Today, she also reveals when the best time to enter the Dax is.
Rescue for Uniper?
Today, Friday, the federal government’s parliament will pass an amendment to the law that will make it easier for the state to intervene in the gas market. The package provides for a pay-as-you-go system that distributes the burden of rising gas prices equally among all consumers, as well as a federal investment in the gas importer Uniper.
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Because he covered most of his purchases with cheap natural gas from Russia for years, the company is now in crisis. Ever since Gazprom cut back supplies, Uniper has had to buy the necessary quantities on the stock exchange at exorbitant prices. According to expert estimates, the energy company is currently making almost a billion losses – per month.
“If Uniper were to fail, that’s the fear, there would be a domino effect. Then all those who are attached as customers would have big problems,” explains Handelsblatt editor Klaus Stratmann in this week’s title talk. Together with Kathrin Witsch and Hannah Krolle he talks about the federal government’s plans.
More: Entry into the final sell-off: Investors should know this index.
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