
Here we are today with the English translation from yesterday’s post on investments and how to deal with the current global crisis.
How can we protect our savings?
In this historical period we have different spectres such as inflation, stagflation, the global recession largely due to the pandemic and the last, in terms of time, the war in Ukraine.
One of the first rules you learn when you start investing in stocks is:
“YOU MAKE MONEY WHEN YOU BUY CHEAP AND SELL AT THE MAXIMUM”
But then, why does Panic Selling occur?
The answer is extremely simple: The emotional factor is one thing and the rational factor is another. Hence, loss aversion often leads to hasty choices.
The suggestions of the greatest analysts?
Rightly, when you invest in periods like the present one you wonder whether to leave them on the account losing value for inflation or risk investing with a current decline in profits.
Below, three basic little tips:
1) Be patient;
2) Never sell for fear;
3) Diversify the investments
To face this moment at its best, it is important to understand that the financial market must take its course and, therefore, we must wait for the growth that will happen gradually.
2 risposte a “WHAT TO DO WHEN THE FINANCIAL MARKET TREND IS FALLING?”
I agree 100% on this post: the emotional side of investing in the financial markets is very difficult to manage. Thanks for sharing your view.
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Sometimes it’s easier said than done, especially for those who cannot invest big sums of money 🙂
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