Each global stock market has its own characteristics, with local market movements often depending on the nature of the market players. When many small investors prevail, the prices in today’s unpredictable circumstances are likely to fluctuate significantly.
If a mature market is in question, with long history like that in the Netherlands or France, you may find fewer optimistic or overly pessimistic investors, because they have historical experience with stocks; therefore, they may not consider temporary market turbulence to be the end of the world.
It is another story with relatively younger markets like Germany’s. Citizens of that country have a working culture emphasising safety and tradition. They like bonds and deposits for investments. When selecting today’s stock portfolio, they usually act in a predictable manner, buying some papers that are rising and have already been overvalued. This is mostly because Germans believe in their national champions.
