Let’s take the example of #Germany in 2022 & 2023.
The country is officially into #recession, after having two successive quarters of negative economic growth.
However, The German stock market index #DAX consisting of the top 40 German companies, is trading very close to its peak #ATH of 16,331.
It’s 1 year and 5 years performances are +20% and +23.75% respectively.
While the investors make a lot of money, the common man struggles with inflation.
As a retail investor, How can we overcome inflation and have a decent investment portfolio?.
- Diversification of assets into stocks, bonds, cash, metal, real estate, forex, etc.
- Do not restrict yourself with assets in a single country.
- Setting separate financial goals for all major expenses and investing for them. Ex: Buying a house, retirement, kids education, buying a laptop, etc.
- Yearly rebalancing of investments based on asset allocation.
ATH : All Time High
Sources:
- https://www.reuters.com/markets/europe/germany-enters-recession-2023-05-25/
- https://www.ft.com/content/6c467445-c8ac-46b6-8082-f0713dea2d2a
Disclaimers
- Any finance-related information shared is not professional legal, tax, or investment advice.
- The information provided is of an educational and general nature and is not investment advice within the meaning of Articles L. 321-1 and D. 321-1 of the French Monetary and Financial Code.
- Investment carries risks of loss and past performance does not guarantee future performance.
- For all professional advice, please consult a certified financial planner, CGP, CIF, tax consultant, etc.
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