Why are capital markets interesting

Coronavirus moves the capital markets - a guide for you as an investor

Capital market & news

The developments on the capital markets are currently causing great uncertainty on the part of investors. Many investors are wondering how the current situation should be assessed. In this blog article you will find a summary of some of the arguments why we advise you not to make hasty sales, but to stick to your strategic long-term investment at this point in time.

Dear investors,

the coronavirus is currently preoccupying the whole world. The ongoing uncertainty surrounding the spread of the virus and the associated economic effects have meant that the capital markets are currently exposed to significant fluctuations.

What does this mean for your private investment?

Despite the current events on the stock exchanges, no hasty sales should be made. We have summarized for you below how this can be justified:

  • A look into the past shows that the stock exchanges have repeatedly recovered after crises. This development was confirmed by the attacks on September 11, 2001, the Lehman bankruptcy in 2008 and the Brexit vote.
  • Fund investments are broadly diversified and long-term investments over several years, which prove themselves precisely in such - mostly temporary - crisis times. The active fund management monitors developments very closely and selects the sectors and companies that are least affected by the crisis.
  • With the fund portfolios we recommend, you don't just invest in a single fund. This diversification into different asset classes and regions should ensure sufficient risk minimization. Investors are only partially or - with a strong focus on bond funds - only slightly affected by developments on the stock market.
  • Investors who have a classic savings plan or a savings plan for capital-building benefits benefit from the average cost effect. You regularly buy additional units and, if prices are low, you receive more fund units for the same amount, which can have a positive long-term effect on the return on your portfolio.
  • Times of crisis always bring opportunities with them: As soon as the markets stabilize with better news, these may be interesting entry levels.

Despite the current reporting and price developments, there is currently no need to panic when it comes to your private investments. The stock exchanges have always overcome political and economic crises. And it has been shown that it is better not to act too hastily, but to wait for the effects of the recovery on the markets and to remain invested in funds with long-term prospects for returns. Stay healthy,

Your SIGNAL IDUNA Asset Management GmbH

Do you have any questions and would you like to speak to our investment advisors?

Then please contact us.
You can contact us as follows:

Customer service investment
Telephone 040 4124-4919

Note:

The information was created solely for information and marketing purposes and cannot replace individual investment-specific advice. They do not represent an investment strategy recommendation or investment recommendation within the meaning of ยง85 WpHG.
 

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