Looking back on the year 2021: The world turned upside down on the stock exchanges

2021 was a turbulent year on the stock exchanges. At times, the courses were unaffected by the pandemic and set records – despite global logistics problems.

Some people rub their eyes in amazement: increasing numbers of corona infections everywhere, extensive contact restrictions. Many retailers, restaurants and theaters are on the verge of ruin. And what happens on the stock exchange? Many large corporations are posting record profits. The share prices rise. DAX and Co. have even reached record levels in the meantime.

The young generation is discovering the stock market

The year begins turbulent: lockdown measures are being taken across the country. Public life is being shut down. During these weeks, thousands of private investors discovered the stock exchange. There are also many young people there. They join forces on internet platforms to bet against professional investors and large hedge funds. And it works. Niels, 19 years old, can still remember the hype surrounding the American video game retailer Gamestop; a hype that made waves here in Germany too. “It’s just a thrill to see how many have made so much money in a very short time,” says the young investor. “The share rises every day by several hundred percent. And that is just very seductive.”

It was the time when people stood in line all over the country to be vaccinated with the vaccines from BioNTech, Moderna, AstraZeneca or Johnson & Johnson. If everyone is immunized, it is hoped that public life will soon be back to normal, as it was before the pandemic. The economy is also looking up again.

Many industries are booming – despite delivery bottlenecks

Prices continue to rise on the stock exchange. January, February, March, April: The DAX reached one record high after the other. And this despite the fact that many entrepreneurs have had the bitter experience in the course of the year: raw materials are scarce and expensive. Semiconductors are missing. Producing “just in time” is becoming more and more difficult. The trade is also feeling the delivery bottlenecks more and more. “Many experts simply underestimated how closely the global economy has now grown together, how closely processes are also interwoven,” says the economist Carsten Brzeski from ING Bank.

And yet: There are companies, even entire industries here in Germany, that have really benefited from the corona pandemic. These include vaccine manufacturers such as the Mainz-based company BioNTech, laboratory equipment suppliers such as Sartorius and logistics groups such as Deutsche Post. Even the automakers, who have been so badly affected by the delivery bottlenecks, are posting record profits. “There was actually an upswing,” says Jürgen Pieper from Bankhaus Metzler, explaining the reasons for this development. “It has been slowed down by the delivery problems, but the demand is enormous.” And customers are ready to pay high prices for a new car.

Omikron stops the DAX soaring

Mid-November: The DAX stands at 16,290 points, higher than ever. Also because the European Central Bank is sticking to its low interest rate policy regardless of the high inflation figures. Low interest rates make it interesting to invest money in the stock market. But then comes Omikron – and with this new virus mutant the realization that the pandemic is far from under control.

“In the last few weeks, with its all-time high, you almost had the impression that Corona almost no longer plays a role and is controlled,” says broker Oliver Roth from Oddo Seydler. “And now we are back on the ground with the facts that Corona continues to be a risk, not only for life and limb, but also for social and economic issues.”

It was a turbulent year in the financial markets and a very successful year from an investor’s point of view. The DAX has grown, from 30 to 40 companies. It ended the trade at 15,885 points. Viewed over the year, this is an increase of almost 16 percent.