Keep an eye on risks: How to protect your assets in uncertain times!

Keep an eye on risks: How to protect your assets in uncertain times!

Managing risk plays a crucial role in wealth creation. In a current analysis, Gerd Kommer highlights the various risks that savers and investors should take into account. The main risks include interest rate risk, default risk and volatility risk. It also describes the cluster risk (concentration risk), which results from the weighting of a position in the portfolio. An example of cluster risk is the high number of oil stocks in a portfolio, as all companies in the industry are exposed to similar risks.

Kommer recommends diversification to avoid cluster risks, for example by investing in ETFs worldwide. In Germany in particular, he points out specific risks that are caused by the dependence of assets on the political situation in Germany. Affected assets include human capital, i.e. income during working life, and pension rights, which are subject to political risk. Real estate is also identified as a cluster risk; their returns depend heavily on the economic situation and the legal framework in Germany. Therefore, it might make more sense to invest in a globally diversified stock portfolio instead of real estate. Kommer warns that cluster risk is often underestimated and is of great importance for private households Focus Online reported.

Global risks and their impact on corporate strategies

In a further analysis, global political uncertainty is viewed as a central factor for entrepreneurs' wealth strategies. Donald Trump's election victory in the US has triggered various market reactions, and unclear foreign policy plans and possible trade wars are creating both new opportunities and risks. Political developments in Germany, such as the energy crisis and a lack of political unity, also put a strain on entrepreneurs. In such an uncertain time, a clear asset strategy is particularly important, with diversification recommended as a key risk mitigation strategy.

The global economy is currently characterized by political and economic uncertainty. In this context, the USA has taken protectionist measures that complicate market conditions. The energy crisis in Europe is leading to high energy prices, requiring costly adjustments for companies, while global inflation trends are influencing wealth strategies and reducing purchasing power. Investments in stable countries and emerging markets still offer growth opportunities. Geographical distribution of assets helps reduce national risks. In addition, alternative investments, such as precious metals and cryptocurrencies, are becoming increasingly important for the wealth strategies of entrepreneurs CNN Money reported.