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Halver’s column: Auweia Wirecard! A blow to the equity culture that investors must not knock over

The financial scandal surrounding the “House of Wire Cards” hits high shock waves. It’s not just about economic losses. Because a host of lawyers and asset managers will claim damage claims in lush heights. Above all, it is about the loss of trust for the financial center Germany.

And here double damage was done. It was not only deceived or was fooled. The supervisory bodies – which they partly admit themselves – have closed their eyes too long. And at Wirecard we are not talking about “running further”, but rather about a member of the German stock index DAX, in which only the undoubted German stock elite should be represented.

Another bad thing is that Wirecard was the favorite share of German small investors, a kind of popular share. The business model “IT payment systems” was considered promising. And they were even a little proud that old economy Germany could also do new economy. We are not blessed with such high-tech companies like America. But with Wirecard, the future was in the depot.

Germany is not a nation of stocks. The average household spends more money on tropical fruits than on stocks. And on this already weak stock culture, the current events around Wirecard act like the turbo lawnmower on the dandelion. In fact, the haters dyed in fur appear on the scene again. They always knew that stocks were devil’s stuff. Wirecard is now mentioned in the same breath as the manipulating US energy group Enron, the bankruptcy investment bank Lehman or car companies that have boosted exhaust emissions.

What has to be done now?

Firstly, the fastest possible clarification and cleanup is required at Wirecard. Who is to blame for what and to what extent?

Second, in the future, company auditors and financial regulators will have to do their homework with the greatest care. Here the American financial regulator SEC is a role model. All of Wall Street trembles before this “Spanish Inquisition”. Anyone who gets caught in their catches is cured for a lifetime. This makes it clear that Wirecard is not symptomatic of all listed companies. The vast majority of public limited companies, their board members and supervisory boards work properly.

Thirdly, it is a matter of carefully examining the long-term profitability of Wirecard’s business model and thus its viability. It is currently not foreseeable whether the loans to the company will be extended. The banks now do not want to risk early loan write-offs in the already difficult Corona period. Perhaps there is still “The turn of a friendly card”, to say it with the great British rock band “The Alan Parsons Project”, so to speak a positive coincidence, so that the customers stay on board the Wirecard. You can also write off later.

Only if the review comes to a positive result will the federal government have to jump over its shadow and participate in Wirecard in order to secure its future technology in Germany with regard to the many jobs. For an apple and an egg, it must not migrate to America or Asia. Certainly, the state’s influence must not lead to political or electoral interference in the company. The wind must blow from Ludwig Erhard, not from Karl Marx.

Fourthly, politicians must promote the saving of shares as a new pillar of old-age provision, so to speak introduce popular capitalism. The arguments are crystal clear. Because saving interest, especially taking inflation into account, is deliberate destruction of assets. And when is there really interest again? Because of global indebtedness, economic structural deficits in Europe and with a view to Eurosclerosis never again! In contrast, dividend interest rates depend on how a Formula 1 car a moped.

Politics and equity support? Here we are probably in the area of ​​utopia. Unfortunately, wedges continue to be taken against shares as a pension, and also with additional tax increase plans.

That can’t shake a shareholder

So, as a non-politician, I have to list the advantages of the stock asset class again. First of all, they are highly liquid. You can buy and sell them at any time. Try that with real estate. Speaking of real estate, its undoubted advantages can be combined well with the advantages of the share in the form of real estate stocks.

In general, stocks have more than made up for all crises in the past without exception. Even the corona crisis has lost its horror in the financial markets to the horror of its equity enemies.

Last but not least, the equity risk can be kept low by regular, financially manageable savings plans. With this investment method, you can even use the price fluctuations in the sense of cheaper average purchase prices for an optimized pension. Those who save in shares in this way cannot prevent becoming wealthy in the long term.

Despite Wirecard and despite politics, shareholders have to stick together. The success speaks for itself.

Legal information / disclaimer and principles for dealing with conflicts of interest at Baader Bank AG: https://www.roberthalver.de/Newsletter-Disclaimer-725

Legal information / disclaimer and principles for dealing with conflicts of interest of Baader Bank AG: www.bondboard.de/Newsletter/Disclaimer

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