Covid-19 Lecture Prof. Christoph Kaserer
Financial market expert Prof. Christoph Kaserer explains why stock market prices recovered so quickly.
Image: ediundsepp
  • Covid-19, Event
  • Reading time: 2 MIN

Covid-19 Lecture on July 14: The impact on the capital markets“Capital markets have swarm intelligence”

Why have stock prices rebounded so quickly during the pandemic? What insights have researchers gained on capital markets during the crisis? In this interview, Prof. Christoph Kaserer gives a preview of his public Covid-19 Lecture that he will give online on Wednesday, July 14 at 6:15 pm.

People were surprized when share prices bounced back within just a few weeks after the crash at the beginning of the pandemic.

The capital markets are often accused of taking short-term thinking to the extreme. But during the crisis it became evident that they actually have a long-term outlook. The assessment was: the pandemic is a natural disaster that can be overcome. And this is how it differs from the 2008 financial crisis, when it was uncertain for months what the long-term consequences would be for the economic system. As a result, share prices were slow to recover.

But eight weeks into the pandemic, many economists were unsure whether the economy would emerge relatively intact.

The capital markets are a good example of swarm intelligence. It’s not just individual actors involved. There are in fact millions. Their expectations for economic trends yield an overall picture that proved much more accurate last year than many individual forecasts. Of course there are differences from sector to sector and naturally this assessment could have been overturned by unforeseen events such as an especially virulent mutation of the virus. On balance, however, investors’ expectations were confirmed.

You show that we were not only able to observe the crisis with the stock market, but also to learn something about the market through the crisis.

An example of this is the discussion about the increasingly popular ETFs. These are funds that track a stock market index without the involvement of fund managers. The fund industry always argued that ETFs were subject to more uncertainty than managed funds, where managers can respond quickly in a crisis to minimize losses. It was not easy to investigate the truth of that statement because we fortunately do not have a big crisis every year. Now the events in the six to eight weeks from February to April 2020 showed: managed funds did much worse than ETFs.

Live stream "The Impact of the Pandemic on Capital Markets" on June 16 starting at 6:15 p.m.

Parallel to the live stream on YouTube, there is the possibility to participate in the Zoom webinar.

More information:

Prof. Christoph Kaserer holds the Chair of Financial Management and Capital Markets. Since 2016 he has been a member of the Group of Economic Advisors of the European Securities and Markets Authority (ESMA).

Program of the Covid-19 Lectures

The event will be moderated by Prof. Marion Kiechle.

Technical University of Munich

Corporate Communications Center Klaus Becker
klaus.becker(at)tum.de

Related articles at www.tum.de

Covid-19 Lecture with Prof. Gunther Friedl

"Ten times more investment than in the last financial crisis"

Business closures, interrupted supply chains and massive subsidy programs, all in the midst of the digital transformation – What is the interim assessment for the corporate sector in terms of Corona? In an interview Prof.…

Covid Lecture Prof. Hübner and Prof. Thielen

"You can't do this kind of planning with pencil and paper"

Prof. Alexander Hübner and Prof. Clemens Thielen are conducting research on resource management and optimization processes at the TUM Campus Straubing. The topic has taken on decisive significance for the healthcare sector…

COVID-19: Perspectives on current research

As the past year has shown, science is central to dealing with and combating the Corona pandemic. Researchers are constantly creating new knowledge about the virus, advising policymakers and industry on medical, ethical and…

Ulrike Protzer is a Professor for Virology at TUM and spokesperson for the Bavarian alliance "FOR-COVID".

Covid-19: Insights into current research

The pandemic has shown how central science is for many areas of society: researchers are creating new knowledge about the virus, they are developing vaccines and treatment options, and they are advising politicians and…

Woman with laptop and coffee cup in her apartment

Strong impulses for digitization, less for sustainability

The digital transformation in companies is being accelerated by the corona crisis – current trends towards greater sustainability and a changed economic order are likely to be only temporary, however. This prognosis is the…

Prof. Klaus Bengler is standing in the hall of the department for machine engineering.

"We shouldn't withdraw into the virtual world"

The Corona crisis changed the working world in no time at all: Home office, web meetings and hygiene measures are now part of our everyday routine. Prof. Klaus Bengler of the Chair of Ergonomics at the Technical University…