Downturn in the summer – Munich Stock Exchange column

You can tell that summer has broken out and Corona continues to rule, which items are not available: After toilet paper and yeast, picnic baskets are now in short supply. So at least read on the title of the Süddeutsche Zeitung under “Open-air culinary”. Packing yourself seems to overwhelm many who want to dine outdoors. There is more in the feature section – where the interesting economic topics are often. While the temperatures, at least in the south, rose steeply, the economy took the opposite direction: “German economy is slumping” was the headline of today’s Süddeutsche Zeitung, optionally we could also read “Germany’s economy is experiencing an unprecedented slump (Die Welt) or “German economy plunges into deep recession” (Frankfurter Allgemeine Zeitung) “Historic low blow for the economy” (Augsburger Allgemeine) and, one size larger, in the Handelsblatt: “World in decline”. That sits. Have a nice Weekend!

Harvest before Thanksgiving

It is still a while before Thanksgiving (early October), but Börse Online promises “Rich Harvest” with a little tree that carries banknotes. Looks a bit like bonsai, but at least. What is meant is “ten rock-solid dividend stocks with sustained high returns”. Should we reveal which ones? Well, in Europe it is, for example, Carlsberg (beer always works, although beer sales have suffered due to Corona) and Procter & Gamble in the USA (should also be washed). Focus Money, on the other hand, seems modest: “I just want my money to bring a return,” says the title. Who does not want that? But then the paper specifies: “How you earn 6 to 10 percent a year and never endanger your capital”. This will probably not work with bank deposits, but neither will with some DAX shares. “The billionaire formula”, on the other hand, made up the WirtschaftsWoche. Because the billionaires Elon Musk, Jeff Bezos and Bill Gates combine not only success, but also the way of thinking.

Smart or not

“Never before in the history of the financial markets have the real economy and the stock exchange world been so decoupled,” writes Gabor Steingart in his well-read newsletter Steingarts Morning Briefing (Friday). In particular, the technology exchanges celebrate “not a festival, but an orgy,” says Steingart. The Frankfurter Allgemeine Zeitung also asks, “What economists think of the positive mood on the stock market” (Thursday). Afterwards, capital market researcher Richard Stehle believes in the rationality of the markets, the good rating of the Dax comes from the fact that there are winners and losers of the crisis, but those who coped with it had good prospects for the future. The counterpart is once again given by US economist Robert Shiller. He believes that investors don’t really see through. The behavior on the markets was based on the news about the pandemic, but on the one hand lags behind and does not give a logical answer to the news! We join in with the lack of perspective.

The dear employees

And then we stumbled over a headline again, because it is sometimes difficult to read accurately and especially at over 30 degrees: “In the future only employees will be able to slaughter” was the title of the world on Thursday. Yes, was it not always the other way around and the employees were slaughtered first? But of course, it was about the slaughtered at Tönnies and not the languishing at the desk.

And another addendum: The Süddeutsche Zeitung invites you to the economic summit in November 2020 in a large format, optimistic on site and digital. “2021: The way out of the crisis” offers three panels with top-class speakers. And it looks like this: Health and safety, 6 men, 2 women; Digitization and work: 6 men, 4 women; Environment and sustainability: 4 men and 4 women. If there had been a fourth and fifth panel, the women’s quota would still have been reached. But there is not.

Author: Ulrich Kirstein, Bayerische Börse AG

Disclaimer: This text is a column of the Bayerische Börse AG. The content of the column is not the responsibility of 4investors and therefore does not necessarily have to agree with the opinion of the 4investors editorial team. Any liability and claims are therefore expressly excluded by 4investors!

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