Hello people! Do you lose heart when things get critical? In English, people like to gossip. And the authors of books have also dealt with the (presumably) German disease “German Angst”. A definition: German Angst is a mixture of discouragement and hesitation, coupled with fear of the future and an dire need for security. In recent history, this is mostly the case when inflation becomes threatening. Historically speaking, people in this country have had very bad experiences with currency devaluation. And now? More and more Germans go to the supermarket with only shopping lists on special offers and leave the gas station with rage in their stomachs. And on the horizon is the threat of further energy shortages driving prices. So the German fear should be justified. Hey, don’t you care, my friends? Then you are probably one of the lucky Germans (without gas or oil heating). Or will the specter end soon?
No, it doesn’t seem like it. Producer prices, which will later affect consumer prices, continue to grow at a record pace. These producer prices increased by 33.6% in May compared to the same month last year, the Federal Statistical Office announced today. This is the strongest increase since the investigation began in 1949! Development is still driven by energy prices, which have risen by around 87% on an annual basis. Natural gas cost around 148% more than a year ago. Power plants even paid 241 percent more for natural gas, industrial customers nearly 211 percent. Electricity cost a whopping 90% more than the previous year, mineral oil was almost 56% more expensive.
No wonder the fear of inflation is spreading and depressing the Germans. According to a representative survey conducted by Civey, 41% of Germans do not have a strategy to counteract the loss of value of their money. After all, one in five see investing in equity funds as an attractive way to maintain value or purchasing power. 19 per cent of Germans currently think it is advisable to save to cope with the situation. In any case, one cannot speak of a lack of awareness. 40 percent of Germans currently describe inflation as their biggest concern, followed by the war in Ukraine, here it is 34 percent. Good advice is required. But many Germans have had bad experiences with it. 14.7 percent – the most cited aspect in a ranking – describe trusting the wrong advice as their biggest financial mistake.
What worries me folks: I hope the German Angst does not cripple interest in long-term equity investments!