• State Intervention: Unlike a free market, the performance of stocks during this period was largely dictated by government policy. Firms that aligned with the regime’s priorities—whether through direct state contracts or ideological conformity—generally fared better.
• Manipulated Market Signals: Because the government often intervened to stabilize or direct economic activity, the “performance” of a stock did not always reflect the underlying fundamentals. Instead, it was more an indicator of political favor and access to state resources.
• Historical Retrospective: Analysis of stock performance during this era must be understood in context. The state’s role in the economy makes it challenging to separate genuine market success from politically driven outcomes.
In summary, sectors tied to rearmament, heavy industry, chemicals, and infrastructure generally enjoyed better stock performance due to government support, while consumer-oriented, export-dependent, and traditional financial sectors struggled amidst economic downturn and heavy state intervention.
