Kursrückgänge

Kursrückgänge, which translates to "price declines" or "market downturns" in English, refers to a period where the value of financial assets, such as stocks, bonds, or commodities, decreases significantly. These declines can occur in individual securities or across broader market indices. The reasons behind such events are varied and can include economic recession, political instability, geopolitical events, negative company-specific news, or shifts in investor sentiment.

The impact of Kursrückgänge can be far-reaching. For investors, it typically leads to a reduction in the value of their portfolios, potentially resulting in financial losses. Companies may face challenges in raising capital or may see their market capitalization diminish. For the economy as a whole, widespread Kursrückgänge can signal a slowdown or contraction, affecting consumer confidence and business investment.

There are different types of Kursrückgänge. A correction is generally considered a decline of 10% to 20% from a recent peak, while a bear market is a more prolonged and severe downturn, often defined as a drop of 20% or more from a recent peak. The duration and severity of Kursrückgänge can vary greatly.

Market participants often employ various strategies to navigate or mitigate the effects of Kursrückgänge. These can include diversification of investments, hedging strategies, or a long-term investment horizon that allows for recovery from temporary downturns. Understanding the causes and potential consequences of Kursrückgänge is crucial for informed decision-making in financial markets.