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The last real crisis on the stock market was in 2008, i.e. 12 years ago, and since then things have virtually only gone up. However, oil prices, corona virus, war in the Middle East and other topics are currently leading to heavy losses on the stock market. Reason for panic and time for wild stock market talk? No, absolutely not. Why the crash is good for you and why you can lean back and relax you will find out in this short article!
Last year most investors made over 30% Plus and now many are lapsing into hysteria. But if you had your investment strategy under control, or if you knew that the markets can't just go up, you shouldn't be surprised that they are currently falling. The markets have always been in cycles, so theoretically no one should be surprised by the current situation.
But as it has always been: Now many are selling their positions, which they bought at a high price when things were going well. They make a loss and talk badly about the markets and the stock exchange. They only come back when everything is again far too well valued and overpriced. The special thing: A lot of people have to sell, even though it means a loss of course. Big investors are forced to do so by shareholders! You can use this to your advantage. Peter Lynch describes this in detail in his Book "One up on wallstreet".
Warren Buffett, probably the most successful investor, says: The stock exchange is an excellent tool to transfer money from the impatient people to the patient people.
So stay calm and maybe even be happy about the low purchase prices! Everyone is happy about the winter sales in the clothing shop. Now there are first-class companies at a special price! And that just before the dividend season - Christmas and Easter together. No question: In the world there are certainly a lot of things happening that are not good and if someone becomes seriously ill due to a virus or something similar, it is not nice. But you don't have to feel like a cold capitalist if you see a crisis as an advantage! The stock market is a tool for pricing and if others panic, you don't have to. As private investors, we have the advantage of being able to think long-term and can now buy cheaply. We do not have a supervisory board that lapses into fear.
You can now even consider it a good deed to give companies confidence in the form of an investment. With a purchase of their shares they receive capital which they currently urgently need. So how about a Louis Vuitton or an Apple stock instead of a bag or a new iPhone?
Nobody has a crystal ball and perfect timing does not exist. There's a saying: "Time in the market > Timing the market". So in German it is better to be invested in the market than to constantly try to be smarter than everyone else and to act constantly. A good time to start such a savings plan is therefore always a good time - but now even more so! Just see the investment as long term and only invest in companies (or ETF's) that you think will be successful in the long run and will be worth more in 10 years than today! If it then goes downhill for another 1-2 years, no problem. You buy again and again cheap. But on average over the years you will be able to make a good investment.
You definitely have a great opportunity to get started now. Don't let the panic get the better of you, but be sure that you will be well positioned in the long run. You are certainly well advised with a savings plan, with which you invest in monthly installments. By the way, an ETF savings plan is suitable for this purpose, as you keep the costs low and spread the risk over many companies. If one company gets into serious trouble during a crisis, it is not a problem because the ETF contains many other companies that will come out of the crisis unscathed.
You have a 3a account that invests in stocks? Viac for example, offers this and now certainly represents a good option for investment! Here you can comfortably Start a savings plan, such as investing in ETF's even though Save taxes! Furthermore, it is clear that the investment is long-term, to provide for your pension and is therefore suitable for long-term investment - as we advise you to do.
Hold your horses! You bought those shares once for a reason. Just because others are paying less for them now, doesn't mean they're bad. Stick to your strategy. Buy good shares now. You're not so sure about the companies anymore? Then it's time for future investments to have a clear strategy. What we are giving you here for a good reason is buy and hold.
Everyone is panicking, you stay calm and invest in yourself! While the stock market is going down, you stay calm and do your own thinking. For example: Which companies will still be successful in 10 or 20 years? What should my portfolio look like? How do I want my 3rd pillar ...to tackle it? Investing in yourself is certainly the best you can do. And if you feel safe and do not act out of fear or greed, you will make the best decisions!
Let us know in the comments what you are doing now or what your strategy is!
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5 Responses
Hello Eric, I took advantage of the crash and finally opened my Swissquote account and invested my first Franconians. I don't know, but pillar 3a is out of the question for me. I don't want my money tied up at any time.
Hello, Helga. I too have recently opened a Swissquote account. A large part of the funds in pillar 3a are already tied up in one way or another. So I'm currently investing around 1/5 of my 3a retirement savings in a fund. This way I don't take too high a risk. Regards
Wow because this is excellent job! Congrats and keep it up.
Hey Schwizerfrank
Cool side! Agree with you on many details.
My personal strategy at the moment is: Get out of money and into material assets. In the ideal case still material assets which yield a return. The reason is simple: The central banks are currently generating more and more currency (be it Euro, CHF or USD) and I expect a high inflation. Take a look at the current situation in precious metals: Philoro, Geiger and Degussa no longer offer gold bars of any significant size, because they are sold out! Would an article on schwiizerfranke be worth it?
In the ideal case, the material assets still yield a return. How this is possible, you can find on my website http://www.zustupf.ch see.
Best wishes, keep up the good work 🙂
Hey grant 🙂
it's true, possible inflation could really be coming our way. Now that all the shops are closed, demand will then shoot up and the sudden emergence of money supply could trigger strong inflation.
If you have an investment strategy, you already have other assets such as physical gold, some crypto or similar in your portfolio. Now to recommend to everyone to take refuge in material assets is not right in my opinion. That would cause unnecessary hysteria like toilet paper. Especially since hyperinflation is only one of many possible scenarios. Maybe in a few months everything will look very normal again on the markets.
Now is certainly a good time to fill up your 3a account with a savings plan with widely diversified shares/ETF's and precious metals (keyword Viac).
Those who have larger sums on the side can also diversify their assets even further than they already do otherwise. In the event of a crisis, one can neither rely on gold (see "gold ban" in the past), nor real estate (mandatory tax), nor cash (inflation), nor crypto at 100%. But if you take a broad view and think about which companies will benefit now and come out of the crisis well, you may even have a once-in-a-lifetime opportunity.
The most important thing is to remain calm, not act emotionally (investments) and show solidarity!
Many greetings!