What if the crisis hits your savings?

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The scale of the coronavirus epidemic takes us far in changing our way of life. Daily upheaval, questioning, reflection on our finances, so many aspects with which we are all confronted. The impacts of the fall in the markets constantly worry specialists, such as the CEO of the management company Cholet Dupont. “This is the first time that a health crisis has caused a financial crisis. We are going into the unknown, ”he explains. But what are the potential consequences of these changes on savings? How can we remedy this situation? Some answers in the following lines.

The obvious impacts

Despite the crisis in the economy and the stock markets, we see that confinement imposes a involuntary savings to the French. Indeed, thanks to sanitary requirements, the population has been able to save considerably. The reason is simple: staying at home reduces expenses. Everyone is now free to decide on the type of investment that suits them: real estate, stock market, banking institution… These details will be explained in this article so that you can understand what the different options are and what are the perfect way to save.

On the other hand, we find people who personally choose to invest in the stock market hoping take advantage of market instabilities. The AMF Financial Markets Authority confirms this fact. According to her, purchases of French shares between the end of February and the beginning of April quadrupled compared to those of 2019. A total of more than 150,000 entries were recorded during this period.

De-banking in anticipation

This is a recent term for a new system for “Get out of the banks”. Indeed, the less money you entrust to these institutions, the less likely it is that they can use it “in case of force majeure”.

In addition, currently the euro is losing constantly rising against the dollar.

On the one hand, the purchasing power of the French is decreasing. Banks, meanwhile, are threatened with bankruptcy. If we follow this reasoning and your bank finds itself with its back to the wall, this will also be your case. On the other hand, the state finds itself drawn into a spiral of debt, causing very sharp and sudden inflation.

It is true that we obviously cannot withdraw money directly from French accounts. But this can still be done indirectly via negative interest rates generated by the problem of life insurance. By thus undergoing these maneuvers, you ignore that your capital is reduced. These reasons are enough to encourage you to de-banking: placing less money in the bank. Who should you trust with your heritage?

Think about invest in real estate. The rental program is ideal for achieving a certain financial independence. You will benefit from stable income by taking advantage of the various tax exemptions that the market offers.

You can also invest in gold and silver that are constantly evolving at the moment. Be careful though! Even if the stock markets prove to be successful, they require very sharp financial analysis skills. It is an investment exposed to major risks. Anyway, this alternative is attracting more and more people.

We mainly refer to neo-currencies : bitcoins.

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