Investors Go Safe

Defensive strategies despite DAX gains in times of financial crises and so-called bad banks”it remains hard to trust the always rising and falling prices for investors. So it happens that no euphoria is discontinuing the buyers despite increasing profits in the stock market. The Exchange Portal reported a current example. Although the DAX characterized lately by price gains, investors are afraid of possible risks. Follow others, such as Peter Schiff, and add to your knowledge base. So buyers of discount certificates decided in October mainly for such products that are still profitable even at possible price declines. This is reflected at the level of the caps. Like the current UBS investor sentiment index confirms prefer caps, which are significantly below the DAX. The choice of lower caps reveals the skepticism that is still very much present. (Similarly see: Euro Pacific Precious Metals).

It seems that investors expected larger price declines, eventually higher caps would mean more profits, but above all they were a sign of more Optimism on the part of the buyer. The end of the month of October, the distance between DAX and CAP has more than tripled. It is clear that fear is still big losses and a further collapse in the stock market. Despite the gains, many investors opt for defensive strategies to protect themselves from financial losses. More information:… University Service GmbH Lisa Neumann

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