Many private investors are currently facing a puzzle. The safe harbor or checking account only casts off minimal interest. Experts therefore advise the money to invest in the stock market. But how can investors there simultaneously increase their money safely and with low risk?
Current situation for investors
With key interest rates just above the 0% mark, savings accounts with banks are no longer worthwhile, because there are also only just over 0% interest rates per year. In addition, the savers in Cyprus and Spain have already been asked to pay and subsequently expropriated by the state.
The logical consequence: if possible, only very small amounts should be parked on the bank so as not to end up even losing money. In addition, an annual loss in value through inflation can in no way be offset by interest on the savings account, or overnight money. Already now, savers pay extra – even if they do not get it as directly held as in expropriation.
Investing in the stock market
It is still advisable to invest a portion of your own capital in equities. It is important to rely on high-yield companies. Naturally, investors can do a lot wrong with the thousands of public companies. Therefore, even here, the risks can be limited when investors buy shares of companies whose value hardly fluctuates. ...CONTINUE READING