The losses of the German stock exchange

Last transactions

The last two transactions of Mary at ABN AMRO were transactions in the portfolio of private investors. She covered open US dollar risks, because it is expected that the dollar will become weaker in 2019. This was done by swapping US shares for shares of emerging countries. As such, ABN AMRO - which was already investing in the government bonds of emerging countries - is now also investing in shares of emerging countries. When it concerns bonds, the emerging countries are more located in Latin-America. However, when it concerns shares, they are more located in Asia. Private investors can also buy these Asian shares via indexes, but there are also nice funds available.

German stock exchange

Over the last year, the German DAX index lost almost 20 percent. That is a sharp decline, but is it a reason for concern? Everywhere in the world, the economy is slowing down, even in Asia. As a result, export countries are facing difficulties. Furthermore, one of the most important industries for the German economy, the car industry, also had to deal with an other setback, namely the new emission rules. These stricter rules had a large impact on the economic growth of Germany and on the business confidence. Both did not fully recover however, which indicates that there are underlying structural problems. One of them is the economic slowdown of Asia. Germany is one of the most important indcators for the rest of Europe, but it is very sensitive for export. Three percent of its export is going to China, which is facing difficulties itself. However, Germany is getting punished by the markets disproportionately. Germany has namely performed better than the US.