Stock market coach Markus Frick with important tips and hints to the latest trends and developments in the stock market I already on my seminars realized that many investors with the subject of ETF are not yet really familiar. This is a big mistake, because I find ETFs right good and much better than certificates. You must never forget that the issuer of a certificate (E.g. certificate of Deutsche Bank, then is the issuer Deutsche Bank) must be for the redemption of the certificate. Certificates are not funds such as funds, and for this reason you should absolutely avoid to buy certificates from small banks. Even at major banks, you are not protected as you could very well see in the case of Bear Stearns or Lehman Brothers this year from surprises.
So you understand me: If you buy a super conservative certificate on the DAX, that year a small fluctuation has, because you want to create your money reasonably safely, then you should expect that your money can be also away! So you invest for example in a certificate from Lehman Brothers and Lehman Brothers is bankrupt, then all your money is gone. This can not happen to you with an ETF. Please note that. Before you put on individual DAX equities to make long-term money, you should always place on a DAX ETF, because that is the better choice in the long term. In the short term you can make certainly more money in individual stocks, but in the long run I'd put never single stock.
It's far too dangerous and you have just sleepless nights. I am an opponent of long-term investing ever, because the markets have become so nervous that scary many opportunities offered one, when it goes down. We assume that the DAX to 4,000 points will fall, then I would buy a first small position as a rising DAX ETF in your place as a long term investment.
January 23, 2017
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