A recent DAX survey by the “Handelsblatt” shows: Investment experts are currently warning shareholders against massive investments.
Stephan Heibel, for example, recommended that it is currently not advisable to make major purchases. “Better buying opportunities should emerge in the coming weeks and months,” the report quotes the stock market expert. Heibel advised investors enjoying accounting profits to realize them and increase their cash quota.
Great pessimism among investors
Heibel justifies his warning, among other things, because of the great pessimism among investors. Furthermore, there is a discrepancy between current mood and future expectations.
According to the report, the expert points out that only six similar levels of pessimism have been recorded in the past. This then led to a consolidation phase within six months.
The second factor, the discrepancy between current mood and future expectations, was only twice as pronounced in the past as it is now. For example, in May 2017, under the presidency of Donald Trump, when political uncertainty was great and yet prices continued to rise. In June 2017, the share price fell nine percent. The second situation occurred in mid-2020, during the coronavirus crisis. After a strong market recovery, the gap between investors' expectations and the market situation caused the Dax to drop by more than 13 percent in October.
Willingness to invest is currently very low
Despite the recent market rally, investors' expectations for the future are extremely negative, according to the Handelsblatt report. Although investors were happy with the recent rally, their willingness to invest was very low at -1.1. The survey also reveals that both private and professional investors are increasingly protecting themselves against price losses.
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