26.09.2023 – Hear, hear: Panic reigns among private investors on the Frankfurt stock market. At least that’s what the Handelsblatt writes. And refers to a new, internal survey.
Stephan Heibel from the analysis company AnimusX, who evaluates the weekly survey in the “Handelsblatt”, now sees the DAX at the crossroads at the 15,400 point mark – so far, every setback has ended here at the latest. If the support holds, the summer lull could end. However, if the German benchmark index breaks through to the downside, the sell-off could intensify and a longer-lasting bear market could follow. The picture shows the daily chart.
Source: Bernstein Bank GmbH
The “Handelsblatt” stated that the mood among private investors had collapsed. The reasons for the pessimism: The announcement of the Federal Reserve to leave the interest rates longer up. In addition, there is a hangover in AI and cloud stocks. Further, the “class warfare” in the U.S. auto industry and ongoing tensions with China are weighing.
Violent crash
But back to the latest survey. According to the Handelsblatt, the market sentiment of the more than 8,000 private investors surveyed plummeted to minus 4.5 points. And this is an extreme value. Expert Heibel stated, “From values below minus four points, we speak of fear and panic.” Investor sentiment had fallen by 5.8 points on a weekly basis – in the past 22 months, it had only fallen more sharply this June, when there was significant profit-taking after the record high. While 19 percent of those surveyed the previous week still saw the DAX in an upward trend, this figure is now only 3 percent. Instead, almost one in two now sees a downward impulse.
Paradoxically, optimism about the future has increased – from the extremely high 4.0 points of the two previous weeks to 4.6 points. The propensity to invest has also risen and, at 3.9 points, has reached its highest level since the start of the Ukraine war in March 2022. Accordingly, on a weekly basis, the group of potential buyers rose by five percentage points, while that of potential sellers shrank by three percentage points. We are therefore curious to see how the DAX will continue. Whether long or short – we wish you successful trades and investments!
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