Friday, June 6, 2014

The Dax 2000 – 2003: The technology downturn – FAZ – Frankfurter Allgemeine Zeitung

On March 10, 2000, both the Dax and the New market reached their former all-time highs. Not Taking into account the dividends, as it is in all other indices practice except when Dax, this high is still far today. Just three days after the then record high, the mood began to tilt, how to but on this day could not have known. On the day of the IPO, the Siemens semiconductor subsidiary Infineon then whose shares gained while 100 per cent over the issue price added, the Dax but fell by 3.5 percent. The mood was gloomy, the market lacked pulses.

From then on it went steadily downhill for years. On 30 November 2000 by 3.4 percent. As had the T’s stock has lost some 60 percent of its value after their high price of 103 euros in March. On 20 December 2000 a warning by the U.S. central bank in front of a slowdown in economic growth could fall to 3.56 percent of the Dax. The hope of a year-end rally was lost.

In July 2002 it was already nearly 2000 points lower. From a deep crisis of confidence was mentioned. The dollar fell, the euro climbed for the first time since February 2000, again over the course of one dollar. Next delivered technology companies weak financial results.

                                                                                      story of Dax: The most important events
                                                             © F.A.Z.





Sometimes it also went straight up. For example, on 29 July 2002 to 7.85 percent. But confidence did not come on. A week later it was already back nearly 6 percent down. The next day we went but by more than 7 percent upward, as the South American financial crisis, a solution approached. Nevertheless, it is a recession or deflation.

cared more In October 2002, the markets seemed at last to recover. First was of a technical reaction, the speech, then it was bargain hunters took advantage of that individual titles had been bludgeoned in the general hysteria over the top to the bottom. Already it has been speculated on a turnaround in corporate profits. And hope grew.

Ultimately, however, it remained at a bear market rally and 2002 with a decline of 44 percent, the worst year for the Dax. Even in 2009 did not reach the losses of this magnitude. Not a single Dax-value closed 2002 with a profit from. At the same time Dax three years were for the first time in the postwar period after a row.

Especially the high losses of heavily weighted in the index financial and technology stocks ensured that the German index on an international scale particularly bad section. The price of Allianz shares fell by two-thirds, of the Munich Re only slightly less during the year. Market historians comforted investors so that one must go back seventy years to find four consecutive years with exchange rate losses. A guarantee that 2003 will have a positive sign that this is not, of course, wrote the Frankfurter Allgemeine Zeitung. And yet it should be the turn

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