The Crash as a Chance to Win

The Crash as a Chance to Win

If some on the stock market decide to flee, this is an opportunity for the courageous to enter the stock market at low prices. At least that is what the fund managers of the investment boutique Loys say, who have fully invested all six portfolios of the investment boutique with their subsequent purchases. Because the cheapest way to buy is during a market slump. However, difficult times await equity investors.

These are being felt through the distortions in competition that have developed as a result of the rescue programmes. How did these conditions come about? The economic hierarchy has been shaken. Less strong companies are being kept alive artificially by the state money provided. Even solid, strong companies are not deprived of government loans. According to Bruns, a current picture of the economy and the companies must first be formed, instead of, for example, immediately entering the automotive industry, because only loans for systemically relevant companies are simply not enough.

What would this mean? Sectors that have received little attention recently but are extremely important, such as hairdressers, plumbers, carpenters, doctors and tax consultants, must be given a more intensive focus instead of tax-optimized large corporations. In short: these sectors must be made attractive.

In fact, the opposite has been observed through excessive taxation and over-regulation. Reserves of many companies are too low. Insolvency is imminent, and that after only a few weeks of standstill.

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