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Segregate Portfolios Based on Short-Term and Long-Term Stocks | news

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As expected, many investors are dizzy after the recent price drop – what should you do now? I was asked this question several times over the weekend. Analysts rate the economy and the stock market inconsistently. But only some encouraging statements are missing for Dax & Co. On the other hand, there are still skeptical voices about the prospects for the further course of 2022 and next year. Because the German economy is groaning from high inflation. However, the end of the road may not have been reached yet. Deutsche Bank’s deputy chief executive, Karl von Rohr, even thinks double-digit inflation is possible. “Our forecast is that we will be at an inflation rate of 7 to 8 percent over the course of the year,” he told the “Frankfurter Allgemeine Sunday newspaper.”

Only faint hopes in the latest expert surveys. See less dark clouds in the cheap sky. However, numerous economic risks remain such as the consequences of sanctions against Russia, the unclear situation of the coronavirus in China and the gradual change in monetary policy. As a result, expectations have improved, but are still well within the negative range, according to the new economic report from ZEW. The Mannheim Research Institute’s mood barometer improved compared to the previous month. Financial market participants also have a slightly better view of the current situation. This is because economic data for Germany recently surprised to the upside. Despite a renewed decline in incoming orders, exports of goods have increased significantly. Industrial production has also recently increased. The positive mood values ​​of the ZEW survey are therefore seen as a ray of hope in the current challenging environment, but by no means represent a turnaround.

Re-enter (countercyclical) or make your equity positions cheaper? I warn him against this. The risk of further setbacks to even lower levels is simply too great. Furthermore, it cannot be excluded that the bearish trend will last longer. Tip: Consider, value investors, separating your stocks based on your personal time horizon. I think it makes sense, especially with larger investments, to reserve a deposit for long-term acquired assets (at least five, preferably more than ten years), a kind of “precautionary deposit” for old age. Do not touch these stocks because this way you can overcome the strongest fluctuations). The other securities are moved to a separate “trading depot” with which you can participate in the short and medium term ups and downs of the exchanges. Don’t forget the possibility to limit your losses with trailing stop loss orders!

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