How the crisis on the markets affects your investments - financial expert explains the current prospects for investors

How the crisis on the markets affects your investments - financial expert explains the current prospects for investors

According to a report from www.fr.de, Thorsten Weinelt, chief investment strategist at Commerzbank, advises investors not to panic but to take advantage of the current crisis on the stock markets. He emphasizes that there are no systemic risks in the banking sector and that the recent collapses of US regional banks are due to their one-sided focus on start-ups and the crypto sector. Weinelt recommends investors to use setbacks to make purchases, as he expects 2023 to be a positive stock market year.

In addition to the information in the article, it can be said that the current turmoil in the stock markets is mainly due to a mix of uncertainty due to the banking crisis and rising inflation. Inflation poses a major challenge for investors because it reduces the purchasing power of their money. Stocks are often viewed as a hedge against inflation because companies can increase their prices to offset inflation.

The crisis in the banking sector and rising inflation could lead to further setbacks on the stock markets. However, it is important to note that these setbacks can also be used as buying opportunities, especially for long-term investors. The long-term return of stocks has historically been higher than the rate of inflation, meaning they can help preserve and increase the value of invested capital over time.

It is recommended that investors diversify their portfolios to spread risk and offset potential losses. In addition to stocks, bonds and gold can also be considered as alternative investment options. Bonds can offer higher returns than term deposits at banks, but do not yet provide sufficient protection against inflation. Gold is often viewed as a portfolio stabilizer and can benefit from a declining interest rate hike cycle and a weaker US dollar.

Overall, the current situation on the stock markets shows the importance of a sound investment strategy and a long-term investment horizon. It is important to analyze the impact of events such as the banking crisis and rising inflation and make informed decisions based on them to achieve investors' long-term goals.