All those who have been observing the development of stocks from outside with interest for a number of years, but who were concerned about entering the market in a phase of exaggeration against the background of constantly new high prices – or at opportunities such as after the last major correction in spring – may also come to this conclusion 2020 were simply too slow or didn’t have the necessary chutzpah to get started. The current sideways phase may give them a little more opportunity to align their investment strategy towards the stock market and to think about which values they want to invest in there.
Read herewhy the choice of index provider is so important.
The fact that an investment in individual stocks is not very advisable, especially for beginners, since the weal and woe of the entire portfolio then depends on the development of one or a few companies, prompts many to think about investing in an index. The Dax, the most important German share index, is of course obvious, as it includes 40 stocks that are mostly known to the average citizen; In addition, there is no language barrier when reading business figures – the stockbrokers elegantly describe this home advantage as home bias.