Three reasons that still speak in favor of equities

Frankfurt Equities have slowed their descent at times over the past few days. Nevertheless, the bears are loose on the markets and will have the stock exchanges under control for a long time. Whether MSCI World, S&P 500 or Dax – many stock market barometers have fallen by at least 20 percent below their record highs that were reached just a short time ago and are therefore in a bear market according to the common definition.

The crash came quickly and unsettled many investors. This is understandable, but there are good sides to the development from a fundamental and long-term perspective for three reasons.

Firstly, it’s good that the air has now escaped from the bubble. Analysts have long complained that the markets have run too far ahead of the economy and are overvalued. Overvaluations of unprofitable growth companies in particular have now been reduced.