The past few days have put investors in the global stock markets to the test. Brutal price losses and hectic headlines have unsettled the markets, making it difficult for investors to remain calm. However, this ability to stay calm is crucial for successful investors, especially in turbulent times.
Background of the Turbulence
- Tariff Dispute Between the US and China: The trade conflict between the US and China has intensified further. US President Donald Trump has announced additional tariffs on Chinese goods, which have been in effect since April 9. China has responded with its own countermeasures, imposing tariffs on US goods.
- Global Market Reactions: These measures have led to massive price losses in the stock markets. The DAX in Germany, the Dow Jones and the S&P 500 in the USA, as well as the Nikkei in Japan, have suffered significant losses. The DAX temporarily fell by more than 9%, and the Dow Jones dropped by almost 4%.
- Commodity Markets Under Pressure: The price of oil has fallen to its lowest level since 2021, as investors fear a decline in demand. Gold, on the other hand, benefits from increased risk aversion and is rising in value.
Impact on Companies
- Export-Dependent Companies: Companies such as BMW, BASF, and Siemens in Germany, as well as Apple in the USA, are particularly affected, as they heavily rely on international trade flows.
- Pharmaceutical Industry: In Switzerland, pharmaceutical stocks like Novartis and Roche have suffered significant price losses due to fears that pharmaceutical products could also be affected by tariffs.
Strategies for Investors
- Long-Term Perspective: Investors should focus on long-term investment strategies and not be influenced by short-term market fluctuations.
- Diversification: A diversified investment strategy can help minimize risks and mitigate the effects of market turbulence.
- Stay Calm: It is crucial to remain calm and not panic-sell. Often, there are opportunities for bargain hunters in turbulent times.
- Safe Investments: In times of high uncertainty, safe investments such as gold or government bonds can be attractive, as they can serve as a safe haven.