The stock markets are living up to their reputation of being no place for people with weak nerves.
The DAX, Germany’s benchmark index of the country’s 30 most valuable companies, has lost 10 percent of its value in the last six months, after gaining just as much in the preceding months.
This volatility is more likely to increase than decrease in the months ahead, given political and economic uncertainties such as the U.S. interest rates and presidential elections as well as Britain possibly leaving the European Union.
But worries about a crash, like the one that occurred after the turn of the millennium or when the financial crisis erupted in 2008, seem unfounded.
The possibility of a U.S. interest-rate hike is creating a fair amount of uncertainty. The American central bank, the Federal Reserve, is keeping investors in suspense. For months, Fed President Janet Yellen has kept the markets in the dark over whether the additional steps will soon follow the first rate hike in December.