Alternative Investments: Return in Corona Times: How to Make Money Now

Fluctuations on the stock exchanges are extreme due to the Covid 19 pandemic. But there is a way out: alternative investments. The Handelsblatt presents them. .

Gold, hedge funds, real estate: Yield in Corona times: With which investments you can now earn money

Fluctuations on the stock exchanges are extreme due to the Covid 19 pandemic. But there is a way out: alternative investments. The Handelsblatt presents them. .

Chairman of the supervisory board of Deutsche Börse calls for more help

Munich Joachim Faber, 69, is as familiar with start-ups as he is with share prices. The supervisory board chief of Deutsche Börse AG is involved in some young companies. Now the doctor of law thinks about the time after the “lockdown”, after the peak of the corona crisis – and calls for “a new start-up initiative, an hour zero of the founders”.

The German start-ups that still exist after Corona would “bring the modernization of the German economy forward significantly,” believes Faber. They are agile and could find gaps. “A large part of the gross domestic product will no longer be served by traditional industry in the future.”

Last but not least, President Donald Trump’s recent push to secure the United States’ vaccines from the Tübingen company CureVac has made it clear that start-ups are part of geopolitics. “We can’t fool ourselves: restrictions on selling good ideas abroad have long been a matter of course in China and the United States,” explains Faber. “Only we Germans are the model boys of free world trade.”

It is therefore legitimate for the federal government to prevent loans or investments from “preventing interesting start-ups from going to foreign investors at bargain prices in the crisis”. Along certain “preference sectors”, “a sell-out of German start-ups must be prevented in the next three to six months”. That would be a sales moratorium for young German companies, so to speak.

Venture Network initiatives

The Chairman of the Supervisory Board also announces initiatives by the Venture Network of Deutsche Börse. It is an ecosystem of founders that currently comprises 200 companies and 400 investors: “We have achieved a lot with this platform. That can and must double. “

According to Faber, the German start-up scene has so far relied too much on foreign investors. In large financing rounds, only ten percent of the capital comes from Germany. But it is “illusionary” to believe that long-term investment companies like Sequoia from California “always provide reliable support to local founders,” warns Faber.

The corona crisis has ended a longstanding boom. In 2019, 6.24 million euros were invested in 704 financing rounds, of which 75 percent came from abroad. Funds like Soft bench from Japan or Temasek from Singapore were strikingly represented.

According to Faber, the one-sided distribution by Germans with large fortunes should change. “We need lighthouses for domestic investors and family entrepreneurs who will stick to it when things get risky but also interesting when it comes to financing growth,” he says. Such investors would need capital organizations that check start-ups and separate the wheat from the chaff. That is just different from the brothers Andreas and Thomas Strüngmann or the SAP-Co-founders Dietmar Hopp and Hasso Plattner, who themselves had large research departments. Faber emphasizes: “The worst thing is when a smart founder encounters naive money. That has to go wrong. “

Worries about startups

The stock exchange chief supervisor cites the venture capital company UVC from Munich as a positive example, which is connected to the UnternehmerTUM start-up center. Its managing director Helmut Schönenberger confirms surveys in the industry, according to which eight out of ten start-ups are currently worried about their existence: “Many have currently switched to remote control, are putting the brakes on costs and are in intensive exchange with investors and customers,” says Schönenberger: “In the consumer sector, the markets are breaking away, and some business models are being put to the test.” On the other hand, the corona crisis also opens up opportunities: “People are open, everyone is moving closer together.” This spirit must be used to promote cutting-edge technology, in artificial intelligence, cybersecurity and medical technology, for example. Everyone would have to contribute a table and their know-how: family entrepreneurs, top managers, state institutions, universities, research institutions – “only then will we bring the start-up scene forward sustainably.” thereby stipulating a clear strategy in which technologies Germany leads Schönenberger wants to be successful. The professor at the Technical University of Munich, whose association is largely responsible for, praises the federal government’s immediate start-up aid of two billion euros BMW– entrepreneur Susanne Klatten is financed.

Reluctance among private investors

Fortunately, public capital providers such as KfW Capital or the European investment fund EIF are stepping on the gas, says Schönenberger. “But many private investors are holding back, that’s a danger.” But it is best for founders to “get the money from the state as a pilot customer and not through alms”. In China and the United States, too, young entrepreneurs grew up with their government buyers, creating an ecosystem.

Foreclosure from foreign investors is not the solution, explains Schönenberger, rather, all resources in the country have to be specifically promoted so that the founders remain in the Federal Republic. “In the past, they only migrated because they lacked support and appreciation.”

Investor Faber, who is leaving Deutsche Börse at the Annual General Meeting in May, knows the scene from a variety of supervisory board positions. In the future, he will head the central supervisory board for four financial firms for the Harald Quandt (“HQ”) family in Bad Homburg. And as the supervisor of the ESMT European School of Management and Technology in Berlin, he happily registered that some students are starting a company.

Faber is now optimistic for those start-ups that have already won private equity or venture capital as donors. These funds would typically have unspent funds in the reserve. There is only a marginal share in the corona crisis. It could be difficult for those who would have to rebuild. Young companies in the tourism, hotel and travel sectors were particularly hard hit.

Checking credit risk

Faber currently sees problems with government loan support for medium-sized and larger companies. Under the lending regulations, the banks involved would understandably have to “check their ten percent risk like a hundred percent risk”. And if the state too often directly gets into valuable start-ups, there is a risk of enormous bureaucracy. Because budget law does not allow risky grants to be simply given away.

Finally, the long-standing board of the insurance giant comes into play alliance another old suggestion: “We urgently need to allow insurance companies and pension funds in Germany to participate in start-ups.” Today’s regulation approach does not take enough account of the fact that significantly more risk must be allowed over a long investment horizon than for short-term ones available facilities. The problem here is securing capital preservation. That was still feasible with a five to ten percent return on federal bonds, says Faber. Today, however, a “significant proportion of risk paper is essential for investments over 30 to 40 years”. And that also includes capital for start-ups.

More: The new delivery service Holy Bowly is adapting its business model overnight to the crisis.

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Dax benefits from economic data from China

PEconomic data from China, which was picked up positively, supported the Dax on Tuesday. The leading German index closed 1.25 percent higher at 10,696.56 points, building on its recent recovery after the Easter holidays.

However, technical disruptions at Deutsche Börse triggered an hour-long interruption in Xetra trading. It was only in the early afternoon that the exchange operator managed to solve the problems.

China’s foreign trade hit harder than feared

From the crash low in mid-March, the Dax has now worked its way up almost 30 percent. The M-Dax of medium-sized stocks gained 1.24 percent on Tuesday to 22,374.20 points.

China’s foreign trade had been hit much weaker than feared by the Corona crisis in March. “If China came with a comparatively small economic loss from the pandemic, that would be positive for the global economy,” commented expert Thomas Altmann from the asset manager QC Partners.

Flattening contagion curves with the corona virus in Italy or Spain also give hope. There is now increasing debate about easing the measures to contain the virus in order to mitigate the economic consequences.

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Dax closes more than one percent in the plus

Dax curve

View of the Dax curve in the Frankfurt trading hall.


(Photo: dpa)

Dusseldorf The leading German index rose by almost 1.3 percent from trading and closed the day at 10,696 counts. So that is the Dax currently not to brake

However, there was no trading on the Xetra platform for more than four hours. The reason for the interruption was a technical problem with the electronic trading system T7, said a spokesman for the German stock exchange. “An error in the internal communication of the trading system triggered the problem.”

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Trading on the German stock exchange stands still for over four hours

Bull and bear in front of the Frankfurt stock exchange

A bug in the T7 electronic trading system led to the longest trading failure in many years on Tuesday.


(Photo: dpa)

Frankfurt, Dusseldorf The stability of their trading systems is for that German Stock Exchange essential. “Our capital is the trust of the market participants in us and our systems,” says CEO Theodor Weimer.

But it was precisely in the hectic times of the corona crisis that Germany’s largest stock exchange operator suffered the biggest breakdown in years on Tuesday. On Tuesday, a large part of the trade stopped for more than four hours from 9.25 a.m. The reason for the interruption was a technical problem with the electronic trading system T7, said a spokesman for the German stock exchange. “An error in the internal communication of the trading system triggered the problem.”

The default affected both equity trading via Xetra and derivatives trading in the most important division, Eurex. In addition, electronic trading did not work on many other stock exchanges that use the Hessen system. These include the trading centers in Vienna, Prague, Budapest, Zagreb, Ljubljana, Sofia and Malta.

In Frankfurt, the floor trading was not affected by the breakdown. However, it has only played a subordinate role for years. More than 90 percent of German stock trading is done electronically.

According to the German stock exchange, trading on the Eurex started again at 1.45 p.m., electronic stock trading on Xetra at 1:50 p.m.

For the company from Eschborn near Frankfurt, it is the worst breakdown in years. Compared to breakdowns at banks, failures at Deutsche Börse are rare. System availability at Eurex was 99.97 percent in the past twelve months.

Weimer hates failures “like the plague”

Most recently, there were two failures in the public eye, which were shorter than the current breakdown. On October 15, Xetra trading began an hour later due to technical problems, and on March 16, 40 minutes late.

The latter breakdown was particularly annoying for Deutsche Börse, after all, the group had proclaimed “Share Day” this Friday in March, where private investors could buy Dax shares and index funds free of charge. In addition, the IPO scheduled for that day was delayed due to the breakdown Siemens-Medical technology daughter Healthineers.

The head of Deutsche Börse Weimer was visibly uncomfortable. “A stock exchange boss hates it like the plague when there are network problems or software problems,” said Weimer a little later in the Handelsblatt interview.

The breakdown in March 2018, according to Weimer, was due to the fact that logging in of several customers’ trading applications to the system resulted in a blockage for all customers. “Such incidents are ugly, but not really worrying,” said Weimer. “What really worries me is massive cyberattacks on all corporate systems, including ours.”

However, the trading failure on Tuesday was not due to a hacker attack, said a spokesman for the Deutsche Börse Group – and thus rejected corresponding speculation on dealer platforms.

Many investors were annoyed by the failure. An hour-long disruption “is unfortunately not acceptable for an exchange,” wrote a user on Twitter. Another took it with humor and asked chief engineer Scotty from the Star Trek science fiction series for help.

More: Private investors are particularly affected by breakdowns in the certificate trade.

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Xetra disruption: criticism after hours of failure

EThere has never been such a long failure on the German stock exchange in the recent past. Almost nothing lasted for almost four and a half hours on Deutsche Börse’s two most important trading systems, Xetra and Eurex. From 9 a.m. to 9.25 a.m., the leading index Dax had just started to recover after the long Easter weekend. From then on, the “curve” on the large display board in the Frankfurt trading hall moved sideways for the time being, the most important German share index, the Dax, remained at the 10,675.93 points it had achieved so far.

Tim Kanning

When the trade started again, the Dax continued on its recovery course taken before the Easter holidays. In the late afternoon, the stock market barometer rose by around 2.3 percent.

“Technical disruption,” it said succinctly from the German stock exchange, and that one is working on the solution of the problem. Such faults are not that rare, but the problems are usually resolved after an hour at the latest. Trading on the stock exchanges in Vienna, Prague, Budapest, Zagreb, Ljubljana, Sofia and Malta is also affected, since these exchanges also use the Deutsche Börse trading system.

Lucky coincidence

The reactions of trading participants were mixed. At the request of the F.A.Z. Benjardin Gärtner, head of equity portfolio management at the fund company of the Volks- und Raiffeisenbanken, Union Investment: “The technical problems and the impairments are unpleasant,” he said. “Smooth trading is very important to us at all times. Today we can be happy that the great unrest on the stock exchanges of the past few weeks with the high volatility in equities is behind us.

It sounded similarly for Eric Böss, who heads global trading at Allianz Global Investors and who also referred to the comparatively calm trading trend: “The markets that were still open, including the American futures, showed little movement and we were therefore not forced to deal with extremely thin liquidity trade. ”The orders from the morning were then simply processed in the afternoon. But Böss also pointed out that it could have been very different on many of the past trading days: “It was a happy coincidence that the default did not take place on a day with the current volatility.”

It was not until 1:20 p.m. that Deutsche Börse gave the all-clear and prepared the trading participants for the restart of the systems at 1:50 p.m. Here, too, the reasoning remained vague: the problem arose in the T7 trading system, which both Xetra and Eurex use. “An error in the internal communication of the trading system triggered the problem.” The Dax then started at 35 points above the level at which it got stuck. During the past trading days, around 1 million transactions had been carried out via Xetra, so it had only been around 240,000 by the afternoon due to the long interruption.

Damage difficult to prove

Does a shareholder simply have to accept such a trade interruption? After all, on days with high volatility, high losses can quickly arise if you cannot sell at the desired time. Shareholder protector Klaus Niedung from the German Association for the Protection of Securities generally sees a right to compensation if the stock exchange simply refers to a technical malfunction.

For small shareholders, however, it is hardly demonstrable how exactly the concrete damage looks and that it actually arose from the loss of trading. The effort would be too high due to the low sums in question. Large institutional investors would, however, sometimes complain if such trade interruptions occurred.

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Criticism of the stock exchange after hours of failure

EThere has never been such a long failure on the German stock exchange in the recent past. Almost nothing lasted for almost four and a half hours on Deutsche Börse’s two most important trading systems, Xetra and Eurex. From 9 a.m. to 9.25 a.m., the leading index Dax had just started to recover after the long Easter weekend. From then on, the “curve” on the large display board in the Frankfurt trading hall moved sideways for the time being, the most important German share index, the Dax, remained at the 10,675.93 points it had achieved so far.

Tim Kanning

When the trade started again, the Dax continued on its recovery course taken before the Easter holidays. In the late afternoon, the stock market barometer rose by around 2.3 percent.

“Technical disruption,” it said succinctly from the German stock exchange, and that one is working on the solution of the problem. Such faults are not that rare, but the problems are usually resolved after an hour at the latest. Trading on the stock exchanges in Vienna, Prague, Budapest, Zagreb, Ljubljana, Sofia and Malta is also affected, since these exchanges also use the Deutsche Börse trading system.

Lucky coincidence

The reactions of trading participants were mixed. At the request of the F.A.Z. Benjardin Gärtner, head of equity portfolio management at the fund company of the Volks- und Raiffeisenbanken, Union Investment: “The technical problems and the impairments are unpleasant,” he said. “Smooth trading is very important to us at all times. Today we can be happy that the great unrest on the stock exchanges of the past few weeks with the high volatility in equities is behind us.

It sounded similarly for Eric Böss, who heads global trading at Allianz Global Investors and who also referred to the comparatively calm trading trend: “The markets that were still open, including the American futures, showed little movement and we were therefore not forced to deal with extremely thin liquidity trade. ”The orders from the morning were then simply processed in the afternoon. But Böss also pointed out that it could have been very different on many of the past trading days: “It was a happy coincidence that the default did not take place on a day with the current volatility.”

It was not until 1:20 p.m. that Deutsche Börse gave the all-clear and prepared the trading participants for the restart of the systems at 1:50 p.m. Here, too, the reasoning remained vague: the problem arose in the T7 trading system, which both Xetra and Eurex use. “An error in the internal communication of the trading system triggered the problem.” The Dax then started at 35 points above the level at which it got stuck. During the past trading days, around 1 million transactions had been carried out via Xetra, so it had only been around 240,000 by the afternoon due to the long interruption.

Damage difficult to prove

Does a shareholder simply have to accept such a trade interruption? After all, on days with high volatility, high losses can quickly arise if you cannot sell at the desired time. Shareholder protector Klaus Niedung from the German Association for the Protection of Securities generally sees a right to compensation if the stock exchange simply refers to a technical malfunction.

For small shareholders, however, it is hardly demonstrable how exactly the concrete damage looks and that it actually arose from the loss of trading. The effort would be too high due to the low sums in question. Large institutional investors would, however, sometimes complain if such trade interruptions occurred.

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Disruption paralyzes stock trading for hours

Dhe share trading via the Xetra platform soon started again after the technical failure of the German stock exchange. Everything has started again shortly after 2 p.m. A disruption had paralyzed a large part of the Xetra trading system, which handles the vast majority of the stock trading on the Frankfurt Stock Exchange.

The so-called trading system “T7” was affected and thus Xetra and Eurex trading as well as trading on the stock exchanges in Vienna, Prague, Budapest, Zagreb, Ljubljana, Sofia and Malta. On the other hand, trading was still possible on the Frankfurt floor.

An error in the internal communication of the trading system triggered the problem. A hacker attack as the cause was excluded at an early stage. The disruption had nothing to do with the fact that some of the employees were working in the home office, especially in the data center in Eschborn, and some of the employees were still on site.

The stock market followed its firm opening. The Dax was up 1.32 percent recently at 10,704 points. The market-wide F.A.Z.index rises somewhat more strongly to 1,947 points. Unexpectedly positive trade data from China had created a good mood. Exports from the Middle Kingdom had shrunk in March, but not nearly as much as feared. Should China now come with a comparatively small economic loss from the pandemic, that would be positive for the global economy, said Thomas Altmann, portfolio manager at QC Partners.

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ETFs celebrate an anniversary in crisis

Bull and bear

The most popular are, among others, ETFs on classic equity staves such as Euro Stoxx50, S&P 500 or MSCI Welt.


(Photo: dpa)

Frankfurt The financial industry stands for crises. There were three in this millennium alone. But if there is a success story in the investment world, then index funds are part of it. On the Deutsche Börse, the two ETF products that existed just two decades ago have now grown to more than 1,500. This includes EUR 673 billion in investor funds. The word boom comes to mind – and is not an exaggeration.

At first, the rush may surprise you. After all, there is no flesh-and-blood fund manager with exchange-traded index funds. Instead, a computer autonomously controls the system based on an index.

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