Market Report Germany:
Why Investors Are Running Out Now
Fearing a stock market panic, Swiss authorities have been pushing for UBS to take over Credit Suisse. But investors are calm about everything else.
In a dramatic rescue operation, UBS took over the badly hit Credit Suisse over the weekend. At the same time, the European Central Bank (ECB) and the central banks of the USA, Japan, Great Britain, Switzerland and Canada are taking concerted action to improve the supply of the financial sector with dollars.
Market psychology is crucial now
One positive aspect, however – and this is a big advantage compared to 2008 – is that central banks and politicians are immediately available and ready to act. You now know that market psychology is also crucial to ensure that a banking crisis does not spread unchecked.
“The banking crisis is currently more in the minds of investors than a real danger,” emphasized the Swiss asset manager Mojmir Hlinka recently in an interview with tagesschau.de. “But panicked selling by investors has what it takes to plunge the market and ultimately companies and the economy into a real crisis.”
By Angela Göpfert, tagesschau.de March 20. 2023
Excerpt in german:
(Original Published in the German National TV ‘ARD’ 03/20/2023 in German)