If you want to invest in the stock market, you will have to buy stocks, in other words, property titles which represent a fraction of the capital of a company. The challenge is to carefully select these private companies and monitor their development, which requires knowledge and time. This is why many small investors opt for a turnkey solution by subscribing to diversified collective investments, called funds and Sicav, managed by professionals.
However, making an investment in equities implies accepting a certain level of risk and having a firm heart since your capital is not guaranteed. If prices fall, you can indeed lose everything. However, the financial markets are particularly sensitive. You just have to see the collapse caused by the coronavirus epidemic. At the end of February, the CAC 40, the Parisian index which groups 40 French groups listed on the stock market, fell 11.94% in five days, a decline never achieved since the crisis of 2008. And this was only the beginning of 'a series of tumbles ...
Don't panic
In the event of a crash, the first reflex is very often to recover your money to limit the damage. However, this is a serious mistake. To save your savings, on the contrary, you have to exercise self-control, as recommended by Albert d'Anthoüard, expert at Nalo, a financial investment consulting company: "If you don't have an immediate need for cash, get out of the stock market because we are afraid of losing everything because of the coronavirus is criminal for his savings. The key word is actually to do nothing.
Investing in equities is in fact long term. If prices fall in the short term, they always end up going up. A study by the Autorité des Marchés Financiers shows that over twenty years, between 1988 and 2017, the average return on regular diversified investments in equities was 5.3%, despite the implosion of the Internet bubble in 2001 , the subprime crisis in 2007 and the debt crisis in 2008. And Albert d'Anthoüard concludes: "The best way to invest in the stock market is to set a long-term objective, to build an asset portfolio in line with his investor profile and to switch off the radio. "
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