Financial expert warns: Investors should be careful in view of uncertain stock markets
Here is an article from a financial expert: After a good start to the year, the stock markets have stalled somewhat recently. The situation on the financial markets is characterized by contradictory signals and negative economic data. According to the IFO Institute, Germany is in an economic crisis and China is suffering from a weak economy and deflation. In contrast, the economy in the USA is surprisingly robust. The US economy is currently growing by around two percent, while Japan is also returning to economic strength. However, central banks and governments around the world are acting in the opposite direction. The American Federal Reserve Bank has sharply increased key interest rates while...

Financial expert warns: Investors should be careful in view of uncertain stock markets
After a good start to the year, the stock markets have recently stalled somewhat. The situation on the financial markets is characterized by contradictory signals and negative economic data. According to the IFO Institute, Germany is in an economic crisis and China is suffering from a weak economy and deflation. In contrast, the economy in the USA is surprisingly robust. The US economy is currently growing by around two percent, while Japan is also returning to economic strength. However, central banks and governments around the world are acting in the opposite direction. The US Federal Reserve Bank has sharply raised key interest rates while governments are launching extensive spending programs to stimulate the economy.
In addition to interest rates, the development of corporate profits is also crucial for the stock markets. Things are not looking rosy at the moment, especially in the technology sector. Corporate profits are under pressure in Germany and China. In addition, there are interest rates again on the bond markets, which means that there is no longer any alternative to stocks. Excessive optimism in the stock market has also declined. All in all, economic data and company news would have to be positive to give the stock markets new momentum.
The recommendation for investors is currently a balanced portfolio. For example, half of 25,000 euros could be invested in stocks, with a focus on the broad market and less on highly valued tech stocks. The other half of the liquid assets could be invested in bonds with good credit ratings in euros with short maturities. This offers a cash replacement and earns interest again. Long-term investors can increase their share quota as soon as the general data on the financial markets become clear.
Financial expert Andreas Enke recommends this investment strategy and emphasizes that he has more than 25 years of professional experience advising wealthy clients.
According to a report by www.n-tv.de
Read the source article at www.n-tv.de