Price drop: “I’m 50,000 francs in the red” – you have to pay attention to that on the stock exchange

published

Stock and crypto exchanges are crashing worldwide. This also hurts the readers. An expert explains how you can avoid mistakes.

1 / 4

On June 15, a bitcoin was worth around 21,400 francs. At the beginning of the year, a bitcoin cost 43,400 francs. The value has therefore more than halved in 5.5 months.

REUTERS

Popular cryptocurrencies like Ethereum, Cardano, and XRP have also crashed.

Popular cryptocurrencies like Ethereum, Cardano, and XRP have also crashed.

REUTERS

Stocks are also falling.

Stocks are also falling.

REUTERS

Bitcoin is on the lowest level in a year and a half fallen, and also the Stock markets are deep red. The editors have the readers askedwhether they too lost money in the crash. There was a lot of feedback. They show that the 20-minute community is also suffering from the fall in prices.

But what do you have to watch out for when you invest money want? The investment expert Urs Rempfler from the company Invalue, which specializes in capital investments, comments on statements made by the 20-Minute readership.

The expert says: «Even experts cannot assess how investments in cryptocurrencies will be profitable in the future. First, cryptocurrencies – unlike bonds, shares and real estate, for example – do not generate ongoing income and are therefore speculative investments. Second, older cryptocurrencies were also launched relatively recently. This makes it difficult to assess their behavior in different constellations. Third, the price fluctuations of cryptocurrencies are extremely high. And fourth, the world of cryptos is very inconsistent – cryptocurrency is not equal to cryptocurrency.”

  • “There’s a simple rule: buy when the stock market is red and sell when it’s green.”

This is what the expert says: “The crucial question is when the stock market is red and when it is green. Experience shows that buying and selling securities frequently causes high costs. Investing a fixed amount in investment funds regularly smoothes out fluctuations in value and limits the impact of emotional decisions and management costs. One should always ask oneself the maximum setbacks and fluctuations in value one can bear in a certain period of time.»

  • «I’ve been in the crypto market since the beginning of 2021 with CHF 90,000. Now I’m 22,000 francs in the red. Instead of selling, I buy more every month. My goal is to be financially independent.”

This is what the expert says: “As already mentioned, cryptocurrencies do not generate any current income and are therefore speculative investments. They may serve as a small addition to a well-diversified portfolio of investments. We advise against cryptocurrencies as a core investment. It makes more sense to have a portfolio that is well diversified across investment categories, regions, sectors, companies and debtors.”

  • “I set up crypto accounts for my kids in October and encouraged them to get acquainted with cryptocurrency trading. Now the monetary value and motivation is halved. But we won’t sell at a loss, rather we’ll invest again. In about five years the children will be grown up, by then there may be new heights.”

This is what the expert says: “Maybe there will be new heights by then, maybe not. We recommend everyone to diversify their investments widely. We consider the underlying blockchain technology to be revolutionary. However, it is still in its infancy and many questions remain.»

This is what the expert says: «In the very long term, patience with sensibly diversified investments on the capital market was still rewarded. There have been many setbacks on the stock exchanges in the last 100 years, but with a few exceptions, the capital markets have always recovered in the long term. However, every crisis differs from the previous ones, as the economic, political and social circumstances are different each time. Therefore, historical comparisons must also be put into perspective. Now, for example, the times of low interest rates seem to be drawing to a close – even lower-risk investments are therefore once again generating positive returns.”

The expert says: «When investing, in addition to one’s own risk tolerance, the investment period is also a central aspect. If you are planning a trip next year and then want to save, you should not invest in risky investments such as stocks. Because the stock market does what it wants in the short term. On the other hand, if you are saving for retirement in 30 years, you may well consider investing some of your wealth in risky assets such as stocks.”

Share:

Facebook
Twitter
LinkedIn

Leave a Reply

Your email address will not be published.

This site uses Akismet to reduce spam. Learn how your comment data is processed.

On Key

Related Posts

Baywatch Hawaii on TV show

Photo credits: still from the TV series Baywatch Hawaii, James Aylott/Getty Images, CBS, Walt Disney, Netflix, Montage: TVSPIELFILM.de (2), IMAGO / Future Image, ZDF/Frank Hempel,