Background of the Trade War
- US Tariffs: US President Donald Trump has imposed extensive tariffs on imports from various countries. China is particularly affected, facing tariffs of up to 104 percent. These measures are part of a protectionist trade policy aimed at improving the US trade balance and strengthening domestic industry.
- Counter Tariffs and Reactions: In response to the US tariffs, China has announced its own tariffs of 34 percent on US products. The European Union is also planning countermeasures, including the reintroduction of tariffs on certain US goods such as jeans and motorcycles.
Impact on the DAX
- Price Losses: The DAX has suffered significant losses in recent trading days. After a crash of over 3 percent in one day, the index lost more than 1,000 points. These losses are attributed to uncertainty and fear of a global trade war.
- Investor Behavior: Many investors are retreating from the market or seeking safe investments like gold, which has risen to record heights in the past. This behavior increases the pressure on the DAX and other stock markets.
- Economic Concerns: Trump’s protectionist policies have led to concerns about a global recession. Experts warn of negative effects on economic growth and labor markets.
Outlook for Private Investors and Retail Investors
- Risk Management: Private investors and retail investors should adjust their risk management and possibly invest in less volatile assets to minimize losses.
- Diversification: A diversified investment strategy can help distribute risk and reduce dependence on individual markets.
- Long-term Perspective: Despite the current turbulence, stock markets can be adaptable in the long term. It is important to focus on long-term trends and developments rather than being influenced by short-term fluctuations.
Overall, the DAX remains under pressure due to ongoing trade tensions. Private investors and retail investors should prepare for a cautious investment strategy and pay attention to developments in global trade policy.