Where the most money could be made: The best stocks, currencies and commodities: The stock market year in five charts
2020 was a crazy year for the stock market. The deep crash in spring was followed by a long corona crisis – but at the end of the year at least the share prices are higher in many areas than at the beginning. We look back on a wild ride in five graphics.
The Dax crashes – and still rises
In spring, the Dax experienced the third largest crash in its history with a minus of 39 percent after the burst dot-com bubble in 2000 and the financial crisis in 2007. But never before has it fallen as quickly as in the first corona wave – and never before has it recovered the Dax again so quickly. With the first vaccinations after Christmas, he recently even reached a new record high.
So in the end there is an increase of around 4.5 percent this year. That is actually a good return for investors, but it is well below the long-term average of 8.6 percent. If we include the predecessor indices of the Dax since 1959, 2020 was a weak year. In 39 of the 62 years since then, German flagship stocks have risen faster.
Stock exchanges around the world: If you had invested in Zimbabwe
Globally, too, the stock market year was not as devastating as the constant corona reports might suggest. Of the 112 major country indices, 65 rose while 47 fell. On average, it went up by 9.2 percent.
However, this cut is significantly influenced by two outliers. Right at the top are the stocks of the ZSE index from Zimbabwe. In the black African country, the values shot up by an insane 914.5 percent. Iran is in second place. Its leading index, Tedpix, was the best in the world in the two previous years. This year it was up 243.7 percent. Nepal (72 percent) and Nigeria (45.9 percent) also offered strong returns. From Europe, Denmark (30.5 percent), Turkey (26 percent) and Iceland (23.2 percent) are in the top ten.
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Germany comes with the Dax on a good 32nd place. You would have lost the most money with an investment in many African country indices such as Kenya (-31 percent), Uganda (-28.1 percent) and Mauritius (-24.8 percent). From Europe, it was worst in Bulgaria (-21.7 percent) and Spain (-14.3 percent).
Silver saves weak year for raw materials
In 2019 you could still have achieved good returns with all the important raw materials, but precious metals and oil were the big sufferers of the corona crisis. Because all countries were shutting down their economies, the raw materials were no longer used as much. Accordingly, some of them fell significantly in price.
The hardest hit was crude oil. The North Sea variety Brent fell 31 percent in value. Oil companies already estimate that the black gold will not recover from this for decades. Platinum also became cheaper. Meanwhile, palladium, which is much needed in car manufacturing, continued to gain in value by 13 percent. It was the raw material that grew the most in the previous year. Gold even gained 14 percent, but you would have made most of the money with silver. That increased by 32 percent in value.
Euro beats all currencies
The euro is a major beneficiary of the corona crisis. Because investors increasingly shifted their money from emerging markets to safer currencies in large industrialized nations and the euro zone with low inflation and reasonably good economic prospects appears to be the most attractive, our currency gained against most of its competitors.
While the losses of the Chinese renminbi yuan were still limited at around two percent, the pound sterling (-7 percent) and the US dollar (-8 percent) fell more markedly. The Russian ruble had gained the most against the euro in the previous year, and in 2020 it fell 23 percent. At the very end, however, is the Turkish lira. At minus 28 percent, it is also the world’s second worst currency of the year after the Argentine peso.
Bitcoin speculators are celebrating new records
You would have more than tripled your savings this year with cryptocurrencies. The best-known, Bitcoin, has increased by 246 percent since New Year’s Eve. It didn’t look like it for a long time. The digital coin had not gained a whit in value by April, after which it fluctuated between 20 and 70 percent plus until October.
But in the final spurt, Bitcoin shot up. In the meantime, the old record has been pulverized in both euros and US dollars. Bitcoin fans have already called out moon prices of up to $ 300,000 per digital coin.
Earning money from the Bitcoin boom [Anzeige]
Bitcoin more than doubled in 2020 – and the prospects for a further increase are good. On December 8th Bitcoin expert Jörg Hermsdorf explained what the drivers of the rally are and how you can best invest in Bitcoin. Record it HERE!
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