The stock market has been struggling with falling prices since the beginning of the year. But which of the popular asset classes have suffered the most since the start of 2022?
The cryptocurrency Bitcoin was hit particularly hard: the price fell by more than 50 percent.
Individual stocks and ETFs also have to cope with massive price losses, as an analysis by digital asset manager Growney has shown.
A war in Europe, inflation, a turnaround in interest rates and an energy crisis: companies around the world are facing massive difficulties. This also influences the prices on the stock exchange. Popular stocks such as Tesla, Apple or Amazon have had to cope with enormous price losses since the beginning of the year.
Digital asset manager Growney has calculated which of the popular asset classes have suffered the most from the changes since early 2022. To do this, they evaluated how much money you would have at the half of the year, i.e. June 30th, if you had invested 1000 euros on January 1st.
“Bitcoin has always been purely speculative”
The cryptocurrency Bitcoin was hit particularly hard: the price collapsed by more than 50 percent. Anyone who had invested 1000 euros at the beginning of the year would have around 450 euros by the end of June. “Bitcoin has always been purely speculative. Due to the currently rising interest rates, however, interest in the cryptocurrency has decreased massively, which is clearly reflected in the prices,” says Thimm Blickensdorf from the Growney management.
But not only cryptocurrencies are among the big losers. Individual stocks have also fallen sharply. For example, if you invested EUR 1,000 in Biontech on January 1st, you would lose around EUR 358 within six months. During the same period, the Tesla price fell by around 326 euros, Amazon by 313 euros, Alphabet by 193 euros and Apple by 175 euros.
“The current market development in particular reveals a major problem for the MSCI World”
Well-known indices such as the MSCI World, the S&P 500 and the DAX have also fallen sharply. Anyone who had invested EUR 1000 in the world ETF at the beginning of the year would now have EUR 852. This corresponds to a minus of 148 euros. The index of American stocks fell by almost 21 percent, i.e. by 140 euros. The leading German index did a little better, falling by almost 20 percent. A 1000 euro DAX investment would be worth around 800 euros at mid-year.
“The current market development in particular reveals a major problem for the MSCI World: the high proportion of US stocks and technology stocks creates a cluster risk. As a result, the MSCI World does not achieve good global diversification,” explains expert Blickensdorf von Growney. US equities make up around two-thirds of the popular index, with the technology sector being heavily represented at more than 20 percent.
Evaluation would have shown how “dangerous” individual stocks are
So what can investors learn from these developments? “The evaluation shows very clearly: Especially in times of crisis, it pays off for investors to be as broadly based as possible. In this way, the investment risk can be systematically reduced,” says Blickensdorf von Growney. Because the evaluation would have shown how “dangerous” individual stocks are.
The financial expert recommends “not losing sight of” long-term goals such as asset accumulation or retirement provision. Blickensdorf says: “The current market development can also be a good moment to invest additionally in order to benefit even more from future price increases.”
Disclaimer: Stocks, cryptocurrencies and investments are always associated with risk. A total loss of the invested capital cannot be ruled out either. The published articles, data and forecasts are not an invitation to buy or sell securities or rights. They also do not replace professional advice.
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