After a dazzling year 2021, the Paris Stock Exchange begins 2022 with a bang. The CAC 40 index reached a new record at the end of the session at 7,317.41 points. It is all the world markets that are driven by optimism. Investors are betting that the economic recovery will continue without disruption, despite the spread of the Omicron variant.
These performances appeal to some savers while their risk aversion is declining, if we are to believe the Barometer 2021 of savings and investment published by the Autorité des marchés financiers a few weeks ago. For the first time in five years, the proportion of French people refusing “ any risk on their investments, knowing that the remuneration will remain low “ fell below the 50% threshold. It falls to 43%, a decline of seven points in one year. And young people would be even more daring: among those under 35, this proportion is only 36%.
However, the Stock Exchange still intimidates individual savers. More than two-thirds of respondents continue to view stocks as ” Reserve[e]s to people who know enough about it ” and ” too risky[e]s “.
But as the returns on secure financial products (Livret A or euro life insurance funds, for example) are shrinking, the stock market is attracting a growing number of investors. Thus, 35% of French people say they want to invest in shares, in the more or less long term, against 28% in 2019. Here again, young people are showing daring: the proportion rises to 49% among those under 35 years, and even 58% among those under 25.
This does not mean that we should systematically bet on “live securities” (live) to benefit from the progression of stock markets.
First, investing in stocks takes patience. A generation of retail investors has emerged who hope to pocket gains quickly. They acted out of opportunism, taking advantage of the lows recorded in the markets to expect a rebound. “We will have to see, in the future, whether this influx of new investors is not fleeting”, warns Christopher Dembik, head of macroeconomic research at Saxo Bank group. The game is risky. It can only be conceived if one is prepared to devote the time to managing one’s investments.
Five to ten years to erase accidents
This is not the wish of the vast majority of savers. In this case, building a portfolio of shares is not the most suitable solution. First, because it is dangerous to limit yourself to a handful of stocks. To spread the risks, it is necessary to diversify your holdings by choosing at least ten securities. This avoids being exposed to the results of a company, industry or country.
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