Middle East conflict leads to loss of value on the stock markets - insight from a financial expert: Timo Baudzus explains the effects and gives advice to investors.

Middle East conflict leads to loss of value on the stock markets - insight from a financial expert: Timo Baudzus explains the effects and gives advice to investors.

According to a report by m.focus.de,
The recent tensions in the Middle East are not only having a humanitarian impact, but are also shaking up the world of finance. As global stock indices fall, financial expert Timo Baudzus gives his insight into the current market changes and their impact on investors.

Mr. Baudzus highlighted the current market changes due to the Middle East conflict and emphasized how these are affecting investors. One of the main impacts is that numerous stocks and ETFs have lost value in a short period of time. This has led to losses in the value of major indices such as the DAX, S&P 500 and NASDAQ 100. For example, the DAX fell by 5%.

Two main reasons could lead to further downward momentum in the stock markets. On the one hand, the indices mentioned are on the verge of falling below important psychological support levels, which could lead to a further acceleration of the sell-off. On the other hand, large investors tend to prefer safe investment options such as gold and bonds in uncertain times. Bonds are particularly attractive at the moment with interest rates of up to 5% and represent a high-yield alternative to the risky stock market.

Despite the current market fluctuations, Mr. Baudzus advises investors to maintain their focus in the medium to long term. Continuing to invest in stocks and ETFs is the right way to go in the long term. He therefore strongly recommends allowing ETF savings plans and stock savings plans to continue. It is important to make investors aware that, even in uncertain times, it is best to take a long-term perspective.