In recent days, the world bags they went down and the actions of companies have lost value due to USA duties imposed by Donald Trump on goods all over the world. These taxes, which fall into a wider “duties war”, have affected goods from different nations, including Italy, the European Union and China, and it is expected that they will lead to an increase in the prices of consumer goods, also competing the tech world and iPhone. The reduction of the bags is mainly attributable to fears of investors Thrump are triggered, worried that the increase in costs can reduce sales and corporate profits. To defend themselves from this situation, investors use strategies such as the diversificationthelong investment term el ‘gradual purchase during the discount phases. Historically, the markets have always recovered from the collapses, offering investment opportunities.
The causes of the collapse of bags and Trump’s duties
One of the main causes of this collapse is given by the fact that the investors, after communications on Trump’s duties, began to think that companies, with this introduction, could can no longer sell their products as before, because they could have to increase the sale cost. As a result, not everyone could afford to buy that good and sales may decrease. In the wake of this presentiment, in advance e for fearmany have decided to sell their actions In those companies, before, having less earnings, the company and themselves, as owners of shares, could earn less or in some cases even risking to fail. This thought arose a chain reaction On the stock exchange, because if suddenly a sector is sold in large quantities, other sectors will also go down, since other people will be conditioned by this choice to sell immediately for fear of losing them too, sometimes even without an apparent reason. This leads to a general descent.
When the value of the shares drops, it means that the company’s value also goes down. But it is important to specify that when the newspapers speak of “Burn” billionsit means that companies have lost value, but this does not apply to those who have not sold the actions, because these they haven’t really lost moneybut they saw only what is called “incapacular“and that is the value of the investment to date; in fact, the loss of money takes place only if you sell the shares at a lower price than the purchase price, then If the sharing shares are not sold And we remain invested by waiting, these will most likely go back over time.
Obviously we should then evaluate every single case history of which titles have been purchased because you cannot know if the actions that you have a single company, will suffer from these collapses of the stock exchange at the point of such as to fail, which is why a diversification of your wallet is essential without concentrating everyone in sun and few companies.
How to defend themselves from the collapse of the bags
Even if we cannot know when the next collapse will happen, there are some strategies that investors use to protect yourselfthe main ones are certainly the diversification of investments, invest in the long term and invest gradually On the contrary, taking advantage of these moments when the shares are “on sale“.
Furthermore, even if the value of the actions today suffers a descent, these companies continue to work, and historically there has been an improvement in the situation over time, even if unfortunately the only worrying unknown man is that it is not known when it will improve and if in the meantime there may be further descents of the markets, thus risking negatively impacting the entire economy, risking even reaching a “recession“That on the news is lately appointed. But it is good to remember that other times, over the past few years, stock exchange collapses have occurred, sometimes even with motivations very similar to today, yet the market has always recoveredand indeed these moments have proved to be a Good time to invest.
The geopolitical situation affects a lot on markets, future decisions on duties could still condition the market, and therefore the bags, but alarmism in these cases is not very useful, what could be more useful is be guided by professionals of the sector that can help savers manage This and future situations of rise and reduction of the bags (since it is not a mystery that continually take place these market fluctuations) in the best way and above all in the most suitable way to needsto goals and al degree of risk who are different from person to person.
