Financial markets in upheaval: How to protect your investments cleverly!

Financial markets in upheaval: How to protect your investments cleverly!

In the current discussion about opportunity-oriented investments on the stock market, the optimal share quota is coming to the fore. The author of an article on t-online.de describes his personal portfolio strategy, which includes an equity quota of 80 percent. This is happening against the backdrop of increasing uncertainty in the financial markets, particularly due to the trading strategies of former US President Donald Trump. The author warns of possible negative effects on the global economy and emphasizes the need to take risks in a controlled manner and exploit opportunities.

The author's portfolio consists of an investment strategy designed for the long term and risk diversification. In the breakdown, 80 percent is invested in stocks and 20 percent in bonds. The largest share is made up of American stocks, while 20 percent goes into stocks from emerging markets and small caps. Furthermore, a portion of 10 percent is invested in both European and American second-line stocks as well as in quality stocks (MSCI World Quality) and dividend stocks, while 10 percent is invested in value stocks (value stocks). The author emphasizes the importance of dividends as a relevant building block for investment success. This aggressive strategy has proven successful in that US stocks have performed strongly in the past.

Optimal share quota for investments

Another article on finsparent.de deals with determining the appropriate share quota for investments. The equity quota is defined as the proportion of the portfolio that is invested in equity funds or ETFs. The article emphasizes that the portfolio should consist of a risky part (stocks) and a low-risk part (bonds or money market accounts). While stocks have high volatility and potential returns, bonds tend to be more stable but provide lower returns. The statutory deposit protection for current account accounts is 100,000 euros per bank and customer.

The analysis shows that a higher equity ratio is associated with a higher expected return, but also a higher risk, while a reduced equity ratio results in lower returns and risks. The article strongly warns against promises of high returns without risk and explains this using historical worst-case scenarios. A 100 percent equity quota could therefore be in the red over a period of 12.4 years.

Important factors to consider when determining an individual equity allocation include risk need and risk capacity. The emotional perception of risk and tolerance of losses also play a crucial role. The article encourages professional advice and the use of risk tools to create an individual risk profile. Finally, the importance of rebalancing is emphasized in order to regularly adjust the equity quota to changes in the market.