Nearly 3.4 million individuals traded on the equity markets between 2018 and 2022, according to the Autorité des marchés financiers (AMF).
The stock market is indeed very profitable in the long term, but at the cost of very irregular performance.
In the latest edition of its annual Asset Class Return Study, Credit Suisse has estimated the real (after inflation) performance of global equities since 1900 at 5% per year on average.
The worst year was 2008 (-42.9%) and the best 1933 (+67.6%).
When and how to invest?
You have to be patient and allocate only the sums that you will not need over a period of at least five years, which avoids having to sell in disaster at the worst time.
It is wise to schedule regular payments to your securities account, until you reach the target amount you want to devote to the stock market.
This will force you to invest as you go along and allow you to smooth out the bumps in the market.
On the envelope side…
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