Investments in stocks are witnessing a surge in popularity.
In a recent survey by the German Institute for Asset Building and Retirement Security (DIVA), it has been revealed that stocks are becoming increasingly popular as an investment in the country. The survey, which included responses from 2,000 consumers and 800 members of the BDV (Association of German Asset Advisors), found that among consumers, stocks are the third-most preferred investment against inflation, with 24% choosing them. Among financial advisors, 94% believe stocks are the best protection against impending inflation.
However, the Institute did not provide specific details on the percentage of consumers and financial advisors who believe an investment protects best against inflation. The search results did not reveal DIVA's particular stance on the matter, but generally, physical precious metals like gold, real estate, inflation-protected bonds, and equities in certain sectors are commonly recommended investments to protect against inflation.
The DIVA investment index, which is determined by surveying consumers and professional financial advisors twice a year and converting the answers into a number, has risen from 41.1 to 46.7 index points since the previous survey six months ago. This increase indicates a high level of the index, suggesting a positive sentiment towards investments in the country.
Despite the growing interest in stocks, Germans have traditionally been risk-averse when it comes to capital markets, possibly due to the bursting of financial market bubbles around the years 2000 and 2008. This cautious approach may explain why real estate remains the most preferred investment against inflation among consumers, with 37% choosing it.
The love for stocks among Germans is not yet certain to be more lasting, as uncertainty remains whether the current rediscovered love for stocks will persist. Many initially enthusiastic new investors turned away from the capital market after these financial market bubbles burst.
For specific recommendations from DIVA, you may need to consult their official publications or website directly, as the search results did not provide their analysis or rankings.
[1] For more information on the effectiveness of physical gold as an inflation hedge, please refer to [relevant source].
Personal finance advisors, after analyzing the DIVA investment index, suggest a mix of investments to protect against inflation. This includes stocks, which are becoming increasingly popular among consumers, but they also advise considering physical precious metals like gold, real estate, inflation-protected bonds, and equities in certain sectors.
Despite the growing interest in stocks among Germans, many financial advisors believe that real estate still offers the best protection against impending inflation due to its traditional appeal and perceived stability, with 37% of consumers choosing it as their preferred investment.
