With the hard hit of the corona pandemic, almost all nations are feeling the financial crisis. Economically, they all have a hard implication: curbing the spread of viruses is associated with massive curbing social consumption. Social contact must be minimized to prevent virus transmission. This means events and meetings of all kinds are prohibited.
Artists, art institutions, large parts of the retail trade, and the manufacturing industry lose income. In some cases, this loss may even be irretrievable. A possible success in fighting pandemics is therefore bought with an economic crash. The faster and more thorough the medical success is supposed to be, the deeper the induced economic crash.
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Investment advisors give their opinion on how one can best protect their assets when a financial crisis strikes. One issue that experts agree on is dispersion, regardless of asset size. In plain language, it means not only rich people should think about the next possible crisis early on.
“The small investor can perceive the diversification in the context of security account just as much as the wealthy investor by selecting investment funds of the respective asset classes,” explains Bielefeld financial expert Michael Göldner. That means equity, commodity, and real estate funds.
Thomas Gertler sees it a little differently. The financial adviser from Chemnitz advises against funds and instead recommends a mix of defensive and future-oriented stocks. See the Stocktrades picks the best dividend stocks here. Gertler cites the papers from Nestlé, Colgate-Palmolive, Alphabet, Apple, and Kuka as examples. “And to secure the equity deposit, the Stabilitas Pacific Gold + Metals P”. It is not surprising that Gertler recommends investing his assets in real estate, because “people always live”.
In addition, he believes that buying precious metals in physical form is worthwhile. “Gold and silver, no other commodities,” said the investment advisor. Some of the metals are to be stored in Germany, the other abroad for security reasons.
Thomas Gertler also gives additional tips. Since financial crises usually happen “overnight”, it makes sense to have enough cash available. As a rule of thumb, according to Gertler, 1,000 euros per person and food storage for four weeks.
Both financial experts – Göldner and Gertler – are also of the opinion that deposits with banks and insurance companies offer no protection against financial crises and are also only slightly lucrative. “The main problem is that investors are still sticking to monetary values, ie banking, home savings, and insurance products,” emphasizes Göldner in an interview with the Business Insider.
In contrast, successful investors’ investment portfolio is minimal and limits it to the “exception”. Conversely, bank advisers and insurance agents are “not at all interested in offering customers alternative products”.