April 10, 2020

Is the stock market crash over already? When should you get back in? Buying Credit Suisse.

Podcast language is German

The stock markets have corrected on a massive scale. This provides opportunities for entry. But when should one enter? Obermatt CEO Dr. Hermann J. Stern discusses the course of the stock markets after the major corrections in the past. It turns out that prices have already fallen far. We discuss what this means in the podcast.

The podcast discusses the following two graphics. The first graph shows how past stock market crashes have recovered. Horizontally, the current price trend is shown. In all crashes, the period begins at the peak of 100, which means that the markets have currently fallen by around 30% and have reached a value of around 70.

The second graph shows how a portfolio would have behaved if the same amount had been invested every month after the peak. The corrections after 2008 have delivered a more or less constant portfolio value for this strategy and were clearly positive again after six years (yellow). The correction after 2001 (orange) was positive again after only five years. The 1987 correction (blue) already recovered in the second year after the crisis. More explanations in the podcast.

We will be hosting additional live stock roundtables. The next one will take place on April 15, 2020, just after Easter. Reserve your participation.

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