Increasingly more savers are looking at the stock market. This is not very surprising, after all, there attract much more attractive returns than in the area of interest rates.
The interest rate market does not look very nice
The interest rate market does not look very nice. Interest rates on overnight deposits have fallen again in recent weeks, making the overnight money account increasingly attractive, especially as there is a risk of rising inflation at the same time.
The interest in equities is also great, however, because the DAX has developed extremely well over the past few weeks. Some stocks have gone down and brought the stockholders strong gains. In addition, the season of dividend distributions begins again.
The companies pass on parts of their profits to the shareholders
However, the stock market is not consistently round. Quite the contrary: In recent days, the DAX fluctuated immensely. While some stocks held up well, other stock values have come under heavy scrutiny.
In some cases, the price losses amount to extremely stately values that one just can not copy with as a private investor.
The strong price fluctuations also make it very clear how risky it has become
if one now enters the stock market. Although it is conceivable that the prices will rise even further, on the other hand, the rally could have run already. In some circumstances, private investors who get in now only lose money. Accordingly, no hasty investment decisions should be made.
Those who now invest in equities must expect everything: further price increases are possible, but there are also risks of decent losses.
Many a saver is therefore better advised to stay with the secure interest rates. Shifting overnight money into term deposits can increase returns anyway. Although the savings must then be fixed for a period of several years, but in return lure higher interest income.