The Austrian financial community has voted: "specter of inflation" (German: "Inflationsgespenst") was chosen as the fifth, Austrian stock market taboo word. The topic of inflation is being discussed particularly frequently in the stock market environment this year. The "specter of inflation" seems to be looming over many conversations. This was also reflected in the nominations for the stock market taboo word 2021. According to Eurostat, the inflation rate in the euro zone rose to 4.9% in November, the highest level since measurements began in 1997. In 2021, experts are divided over the impact that price increases will have on the stock markets in the coming years and when countermeasures such as interest rate hikes will be necessary. Even beyond the financial sector, the topic is part of everyday life.
"Consumers notice the price increase in the supermarket, at the gas station and even in the morning at the bakery. Savers who park their assets only in savings deposits and cash are losing out. If EUR 10,000 are left without interest for 10 years at an inflation rate of 2.5%, its real purchasing power is reduced by one fifth. By investing in assets like stocks, one can participate in rising prices and dividends in the long run," says Christoph Boschan, CEO of Wiener Börse AG.
Since 2017, the Vienna Stock Exchange has been launching an annual call to the local financial community to nominate a stock market taboo word of the year. Terms that have attracted negative attention from industry representatives in the current year are accepted. The jury's decision focuses on the significance, popularity and linguistic meaning of the words. The aim is to capture the thematic and linguistic Zeitgeist of the stock market year that is coming to an end and to contribute to contemporary history with the annual publication. Like last year, there was a high number of submissions on the "Corona"-topic. In addition, "supply chain issues" and "chip shortages" were high on the list. "Corona-related" (2020), "Brexit" (2019), "punitive tariffs" (2018) and "negative interest rates" (2017) were the last stock market taboo words to prevail.
