The coronavirus outbreak has caused panic both in financial markets around the world and in the minds of small carriers. In Paris, the CAC 40 fell by 36% last month and fell below the threshold of 3,900 points. Not published. How can we react to this repression on the stock exchange? Philippe Cervel, President of the Savings Circle, advises small carriers.
An unprecedented situation that requires caution
Given this situation, many small owners are wondering how to position themselves on the stock exchange. “This is an unprecedented situation. We must remain cautious in the face of the unknown, we have very little visibility in a context and an exit from the crisis that remains very uncertain,” says Philippe Crevel.
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The manager of the savings circle warns those who want to position themselves on cheap securities, but do not know PaspasEvolution. It is too early to know how the markets will behave. “We can hope that the announcement of the ECB’s recovery plan will have a positive impact on European markets. This will allow France and Italy, in particular, to release their interest rates while staying low,” said Philippe Crevel. Last night, the ECB announced a €750 billion purchase programme for public and private securities, which was implemented at least at the end of 2020. This contingency plan should calm markets and ultimately support production and employment in the face of the health crisis.
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Two tips for savers in the face of the crisis
Philippe Crevel presents two tips that can be used as a compassist to your investment. First of all, it is for Investors who, it’s better not to try anything that could jeopardize their assets.” A first advice would be to avoid panic by selling securities that lose value. At the same time, avoid buying attractive prima face offers or buying attractive values such as gold or diamonds,” explains the expert. Second recommendation, which might be of interest to liquidity holders: “For those who can invest, agricultural and food values appear to be values on which to be positioned. On the contrary, there is no need to turn to nationalized companies like Air France-KLM, Airbus or Renault,” explains Philippe Crevel.
In this period of uncertainty, it seems more than ever to advise investors in search of income a classic strategy but Proven: monitor companies whose distribution of dividends to shareholders is safe and sustainable. And don’t upset his equity portfolio.
Wisdom would therefore be appropriate in a sector that has habits, agitation and fever.