WHC analysis of the situation
Due to the current COVID19 crisis and the resulting freezing of various economic sectors, the stock market also had to fall. But like after every stock market crash or stock market correction, new buying situations and new profit opportunities arise. As the past shows us, old highs were repeatedly reached and then far exceeded.
For this purpose, we have inserted a graphic that shows the stock market crashes / stock market corrections in the years 2000, 2008 and just now 2020 and their effects.
As can be seen very well from the chart, the old highs were repeatedly reached. It is important to know in the current investment decision that the stock exchange is always a good 6-12 months ahead of the real economy, because investors naturally invest when they speculate on future profits of the stock corporations.
We currently have a special situation, the current crisis was not caused by a financial crisis like 2008 or by the bursting of a bubble like 2000 the .COM bubble or by a bank failure like 1930 which led to an economic crisis, but by a pandemic. That means, however, that orders still exist, that trade relations still exist, that demand is still intact, only that the time has been postponed due to the lock downs, but it can be expected that as soon as normality comes back more and more, the economy will start up again relatively quickly and that’s exactly what we see on the stock exchange. Since March 24th the markets have been rising again and have already made up 10% of the losses, now is the time to invest, now there is a gift of 20% return on the market to pick up, now the clever investor is buying !!!