Economics, Germany

Bye, bye, Neuer Markt

poor baby

Deutsche Boerse, the main German stock market operator today announced that the Neuer Markt (new market) would be dumped by the end of the year. It’s a widely welcomed and probably useful decision to get rid of a market and respective index that has plunged for 2 1/2 years in a row. Fair enough, what goes up like a rocket, must come down once the boosters burn out. But I remember all the success stories back in 1999. I remember the days before those 2 1/2 years, when “going public” was the main subject in my business schools cafeteria. When the Neuer Markt was synonym with getting rich, fast.

There will be a new, more efficient trading system for tech stocks. I guess it’s a good sign that the market is being cleared from all those penny stocks, whose IPO was probably planned in a cafeteria just like mine. It’s not that the digital revolution is dead. It’s just that it is eating is children. Another revolution to prove that rule.