Following the news that US President Donald Trump had imposed prices on most of the world, the markets came into free fall.
The so-called “release day” on April 2, Trump announced scanning taxes that triggered market accidents in the United States and Asia. After the American president suspended the prices for 90 days, the prices have rebounded slightly and have been extremely volatile since.
The thousands of billion were wiped on the stock market after pricing announcements. The greatest losers were undoubtedly billionaires, who saw billions destroyed from their market value, notably Tesla and the CEO of SpaceX, Elon Musk, the CEO of Amazon Jeff Bezos and the founder of Facebook Mark Zuckerberg.
But what do you do if you had put money in the FNB or on the stock market to prepare your pension and you see now red?
Euronews spoke with the world director of chief investment of the private banking bank of the Deutsche Bank Christian Nolting and the chief strategist Robert Greil of the Private Banque Merck Finck to obtain their advice.
1) Consider keeping the sale of shares and shares
Nolting and Greil agree that it is worth trying to keep where you can. Nolting advises impulsive sale.
“On the one hand, the worst days of stock market performance can often be followed by the best, and miss it is very expensive for long -term performance.”
“But although the best engine of positive stock market yields remains invested, also remember the role of coverage and allocation of strategic assets to support future portfolio gains,” adds Nolting.
Greil recommends remaining invested in general but to check if individual sectors that you have invested in excessive risks. This could signify the hand to a financial advisor or stay in the loop on the markets.
He also says that the actions affected by the prices have suffered the most, which can change very quickly.
“In the technology sector, we have seen how fast the actions can fall and then recover. I think that for the moment, volatility can move from one sector to another, and for this reason, people should be careful until there is stabilization,” he said.
2) Should you consider investing more now than the markets have decreased?
Some investors seek to take advantage of market volatility by buying the decline, which means investing while prices are low. However, this could be risky because no one can say if the market will continue to fall.
Nolting says that although the markets have been recovered quite significantly since the beginning of April, “it is unlikely that they move permanently above their previous levels in the coming weeks”, in particular with the imminent threat of higher prices with an impact on companies.
ADVERTISEMENTThe changes in progress in American policy continue to leave investors and markets in a state of uncertainty, which means that investors are nervous at the idea of buying actions and actions. This means that they are more likely to have liquid funds, which means money, while instability continues.
However, there is “another case to” buy the DIM “, in particular for long -term investors in secular growth themes,” says Nolting.
On the other hand, Greil suggests being careful for the moment: “The situation is very uncertain, and we see new constant announcements of the American administration. Due to this uncertainty, I think people should wait until the situation stabilizes,” he said.
3) Should you prioritize the conservation of cash savings rather than buying actions and actions?
ADVERTISEMENTThe Deutsche Bank stresses that he does not see a crisis with the stock market for the moment.
Nolting says that keeping money on a bank account is not a bad idea, so people remain flexible.
“But, in a portfolio context, investments such as gold, the Swiss franc and the Japanese yen can be more appropriate in the longer term, as could rebalance the exposure of your actions to more defensive sectors,” he said. He also recommends coverage as “an important functionality to consider for the safety of the portfolio”.
Coverage is an advanced investment technique, where investors make safer investments, as in term contracts or options, to compensate for the risk of losing too much with higher risk bets. Although it decreases the risk, it can also reduce potential profits.
ADVERTISEMENTGreil says that access to species in bank accounts is “certainly a good idea”, but also recommends various investments, including in the Obligations of Gold and the European government in complete safety, for example.
He points out that people should have a diversified portfolio and not contain cash assets. This means having money, certain shares and stocks and investments in safer and less volatile investments such as gold and government obligations to minimize risks.
4) Should you be nervous about a recession?
Nolting and Greil say that although the risk of recession has increased due to higher prices and market uncertainty, they do not yet panic.
ADVERTISEMENTNolting says that he thinks that if uncertainty ends and that sustainable commercial transactions are concluded, an American recession can be avoided. However, Germany “will not be helped by its high dependence on exports”.
He adds that for the low euro zone, but positive growth in GDP is possible in 2025 and 2026.
Greil says that Merck Finck thinks that if the probability of a global recession has increased, it is not our basic scenario. “
“For this to happen, the prices should stay in place longer, and it would be necessary to be predictable that they will remain. For the moment, it is too early to say. If the prices are quickly removed to avoid too much to damage the economy, we think that a recession could be avoided,” he said.
ADVERTISEMENTEuronews wishes to remind readers that global investment decisions should depend on the risk profile of an individual and his investment horizon.
