Crisis: cash put aside to save or invest

Miscellaneous solderx August 8, 2016 0 0
The debt crisis and the dubious approach to them by the European Union provide a lot of uncertainty in the stock market and the common man. What will happen to our money when banks go bankrupt? Does it still make sense to save the money is worth less? These are all questions to which the answer is not immediately obvious. However, it seems for the time being makes sense to put cash aside in a savings account and a trading account. In case of financial affairs, it is important to never too much to bet on one possible outcome but in order to take account of different situations.

The debt crisis: what to do with your money?

In early November 2011, the debt crisis in Europe seems still unsolved, despite numerous European summits. Also, the G-20 in Cannes, France did not really came up with a concrete solution. The markets reacted nervously to the European good intentions to pull Greece out of the doldrums and the stock markets are volatile, almost every day: they are violently up and down, both in Europe and in the rest of the world. Even hang in the period 2014-2015 the Greek debt crisis was like a thundercloud on the European exchanges. The man in the street poses the question of how to manage their money: save or invest?

Printing more money and inflation

To address the problem of the debts of the countries oppressed both the US Central Bank and European money. The money supply increased and therefore also its depreciation. This allows you to buy less and less with your money. You would have to ask the question whether it makes sense to save. If the savings rate is lower than inflation, you do in fact lose. And it is especially this fact, which many people shy away if you save yield loss than you can spend your money better, right? Or are there perhaps useful ways to invest your money, thereby supporting the balance between risk and potential return is interesting?

Savings: still a good solution?

Consequently, you may argue that saving does not make sense at all, since you still savings to reduce its value by increased inflation. But then what to do with your money? Investing in real estate? Investing in gold or stocks? It's the year 2011 has become so uncertain in the financial world that just about every asset class may entail a risk. Exactly why can - ironically - still save a logical solution, even if you are losing relative to inflation. It is prudent and safe place to leave your money just as safe in a savings account.

Investing in shares: waiting for the right moment and then latching

Investors follow the jittery markets closely and investigate the possible outcomes of the European and American debt crisis. It is difficult to predict how the markets will evolve, but it seems that now, in November 2011, the worst is not yet. The entire eurozone is at stake and the power of the BRIC countries, led by China, seems to be getting bigger. Therefore it seems interesting to do some cash to keep an investment account until better times. In a subsequent stock market crash smash undervalued stocks of healthy companies is possible.