Invest with profit: The crisis as an investment opportunity

Many people are at war with investing.

It is considered important.

But ultimately, it falls into the category of a chore.

And since, unlike with the tax return, there is no time pressure from appointments and there are no immediate consequences, the thought of having to do something there quickly comes to the back of the mind.

Another difficulty of investing is its uncertain benefit.

You are entering uncertain territory with no guarantee of a reward.

Who would like to do that voluntarily?

Scandals in the crypto world are making headlines right now.

One of the largest crypto exchanges suddenly went bankrupt, billions in customer money disappeared.

This is grist for the mills of those who suspect a lot of profiteers in the financial world who line their pockets more or less illegally.

To the detriment of bona fide savers who prefer to leave their money in the local savings bank account.

lethargy of savers

Negative interest rates have severely tested savers' lethargy.

Few things are felt to be as bad as losing money.

Some dared to take their first steps on the capital market, not out of conviction, but as a supposedly lesser evil.

Corona, the war in Ukraine and commodity inflation followed promptly – the year 2022 will go down in capital market history as one of the weaker ones.

Now there is even interest on the savings accounts again.

Timid first steps, rarely more than one percent, but still.

Anyone who sits back and sits back satisfied in the face of this is making an expensive mistake.

The gradual loss of purchasing power is not as visible as negative interest rates of 0.3 percent, but it is often much worse.

In view of inflation rates of eight percent, the savings book, even with two percent interest, brings with it a real minus of six percent.

It is important to find an asset class that develops better than inflation in the long term and thus preserves or increases assets.

Financial history shows that this is mainly provided by equities.

Unfortunately not every day, not every week and every year.

But over a period of ten years or more, a return on shares of eight percent is normal and thus significantly more than any savings book or money market account will ever bring.

Anyone who keeps looking at the prices gets nervous

The curse and blessing of stocks is their constant tradability.

Curse, because every second you can see what the company shares are currently worth.

If you keep looking there, you can get nervous if you lose parts of your fortune.

At the end of September, the Dax was at less than 12,000 points, a solid quarter below its high for the year.

If you are long-term oriented, you should not let this irritate you.

Compared to autumn 2020 or 2019, there was no longer a minus to be seen.

And in the fall ten years ago, the Dax stood at 7,000 points.

It is currently around 14,500 points.

The stock markets have realized that not every fear of a cold winter with idle factories without gas was justified.

The German economy grew surprisingly significantly in the third quarter, the Dax companies achieved record sales and record profits.

You're better than ever.

Of course, no one knows what their situation will be in a year, or in five, or in ten.

Investing in the stock market requires basic trust in the adaptability of companies, in their innovative strength.

If you bring that with you, you can also invest a part of your assets in the capital market in a very relaxed manner, broadly diversified in a fund or index fund.

That is the blessing of equities, that everyone can invest flexibly and at low cost in the global economy on a daily basis, even with little money.

If you enjoy it, you can also choose one or two dozen individual values.

Recent record profits show that many companies have strong brands and pricing power.

They can pass the energy costs on to their customers in the form of higher prices.

Anyone who has the necessary basic trust in companies and the economy can even look forward to setbacks on the stock markets like this year.

Crises are always great opportunities to buy shares cheaply at low valuations.

Now they have recovered to normal levels, but are not expensive yet.

The expectation of a moderate recession in the winter is already included in the prices, as are further interest rate hikes.

The gross domestic product figures have shown high values ​​for investments.

This reflects the companies' optimism about the future.

Investors should do the same and participate in this good future with shares.