Börsen Crash: Navigating the Market Turmoil
International stock markets are experiencing a significant downturn, with the German DAX plummeting by nearly 10% on Monday, April 7, 2025. This dramatic fall follows escalating trade tensions fueled by US tariffs, leaving investors wondering: how far will this crash go, and what should they do?
The Trigger: US Trade Policy
The root of the current market volatility lies in the aggressive trade policies of the US government. High tariffs imposed on imports from the EU and China, despite signals of willingness to negotiate, have sparked fear of a global recession. This fear has driven massive sell-offs as investors, losing hope for improvement, rush to divest their shares. Financial market expert Andreas Lipkow describes the situation as one of "massively increased sales pressure" and "bare nerves."
Expert Advice for Private Investors
The unpredictable nature of US trade policy makes predicting the market's future trajectory challenging. Short-term price losses are expected. While many experts advise against panic selling, simply "sitting out" the crisis isn't a risk-free strategy. Alternatives like call money accounts offer low interest rates, while government bonds, though initially showing increased demand, offer diminished returns. Gold, a traditional safe haven, has seen a price surge, but its long-term performance remains uncertain.
Historical Context and Industry Impact
Sharp market declines are not unprecedented. The Dotcom bubble burst in 2000 and the 2008 Lehman Brothers collapse are notable examples. However, the current situation, driven by fundamental disruptions to global trade, could have more lasting implications. Initially, US tech stocks were hit hardest; however, the impact is now widespread, affecting nearly all export-oriented businesses. Companies with diversified manufacturing facilities are faring comparatively better.
Impact on the Real Economy
The trade war's negative impact extends beyond the stock market. Reduced consumer spending, investment hesitancy, and lower corporate profit expectations are likely consequences. Market strategist JĂĽrgen Molnar anticipates "lean numbers and cloudy prospects" for numerous companies in the coming quarters or years.
Technical Failures Exacerbate the Crisis
Adding to the chaos, online broker Trade Republic experienced significant technical disruptions on the day of the crash, leaving users unable to access their accounts or execute trades at critical moments. While the platform claimed the issues were resolved, the timing and scale of the outage raised concerns about potential legal ramifications and investor confidence.
The Road Ahead
The duration of the downward trend remains uncertain. A resolution of the trade conflict could lead to a quick market rebound. Conversely, continued escalation could trigger a prolonged global recession. The actions of President Trump will play a crucial role in shaping the market's future.
