German Shareholders not as Stupid as some think
From time to time German shareholders are alleged to be pro-cyclical. When the stock market does well, they jump on the bandwagon too late, and when the stock market does poorly, they exit near the dips. If you believe the data from the Deutsches Aktieninstitut, which has a wide range of investor behavior queried, things are different now.
In 2022, despite the price setbacks associated with the war, more investors have invested directly and indirectly (via funds) in stocks. The value is as high as it was last time in 2001, when many investors just bought Telekom shares at unfavorable prices or entrusted their money to pompous Internet fanatics.
Now investors are on a better path. You are investing more broadly in funds and ETFs and are therefore less risky than investing in one or a few individual stocks. They often save regularly in the capital market through savings plans. Ideally, the money would be invested there for decades. Thus today’s price reversals can be seen with at least one laughing eye, as they help get cheaper entry.
All stock market surveys show that it will be worth it in the long run. All that is required is confidence in the adaptability and innovative ability of listed companies. They have been proving it for at least 150 years. Will this also be the case in the future? The year 2022 in particular speaks of this, when record profits were made under the most difficult conditions.
