Genuine Question
Did Germany have a stock index in 1930? If so how did it do over the 1930-1945 period?
Germany did not have a formal, centralized stock index in the modern sense (like the DAX) during the 1930s and 1940s. However, there were active stock markets, and financial historians have reconstructed indexes based on historical data.
Performance Overview (1930–1945)
1. Early 1930s – Great Depression:
• Similar to the U.S., German stocks crashed during the global depression.
• From 1929 to 1932, equity values fell by over 60–70%, with extreme volatility due to economic collapse, unemployment, and political instability.
2. 1933–1939 – Nazi Regime and Recovery:
• After Hitler came to power in 1933, the stock market partially rebounded due to government-led rearmament, public works, and monetary policy.
• Industrial shares—especially in sectors like steel, chemicals, and armaments—performed well.
• However, the recovery was heavily manipulated: capital controls, propaganda, and repression of market forces meant that price signals were distorted.
3. 1939–1945 – World War II:
• The market functioned under severe restrictions during the war.
• Trading volumes collapsed, many stocks were not traded freely, and the government intervened heavily in pricing.
• Despite this, reconstructed data suggests that nominal prices remained stable or rose modestly, but:
• Inflation-adjusted returns were poor.
• Liquidity and trust in markets were extremely low
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