Financial experts warn of panicked exits from ETFs due to fears of stock market crashes

Financial experts warn of panicked exits from ETFs due to fears of stock market crashes

According to a report from www.abendblatt.de,

The MSCI World Index is sending sell signals and the “Fear & Greed Index” also indicates extreme fear among investors. The weakness of the stock markets is triggered by the sharp rise in yields on fixed-interest securities. The Investor Sentiment Survey suggests that many investors expect a stock market downturn. However, experts recommend investing in stocks instead of exiting ETFs, as the pessimism in the market does not necessarily indicate a sharp setback or even a crash.

The MSCI World Index was hit hard by the declines in some technology stocks in August and September, which raised doubts about the artificial intelligence hype. The weakness of the stock markets is also due to the sharp increase in yields on fixed-interest securities. But the Hamburg securities experts are confident about the stock market and expect that the reporting season for the third quarter could be the catalyst for rising prices again.

Despite the rise in fixed income yields, equity investing remains an attractive option. Stock experts are confident that the DAX will recover by the end of the year. Despite the recent period of weakness on the stock market, experts recommend staying invested in stocks, as historically October and November are good months for the stock market. ETFs continue to be recommended by consumer advice centers for long-term investments because they have low annual costs.

Risk-averse investors are not expected to fare any better by avoiding stocks this year as savings rates remain below inflation. In contrast, the stock market has increased by a good eleven percent since the beginning of the year. This underlines the attractiveness of stocks as an investment class despite the current uncertainties in the markets.