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Important tips & tricks for pillar 3a and vested benefits. Do more with frankly.
Market turbulence – what now? Market turbulence - what now?
Price corrections and downturns have always been part of the stock market experience, and cannot be predicted. The important thing is not to lose focus on your personal investment horizon and to avoid panic selling.
Focus on your personal investment horizon and avoid panic selling.
What do the market turbulences mean?
Crises and market corrections have always been part of economic life. They happen every now and again at irregular intervals. It is also impossible to predict how far share prices will fall and how long they may take to recover.
A glance at history shows that crises are usually followed by longer periods of recovery. For example, after the 2008 financial crisis the Swiss Performance Index (SPI) only returned to its pre-crisis level in 2013. In the case of the recent shock caused by the corona pandemic, prices recovered within just a year. So you can sit tight and wait out any crises, because time is on our side.
Market turbulence is part and parcel of investing, and brings opportunities with it. These fluctuations can be managed better with long-term investment plans and diversified portfolios.
This means it’s worth staying calm.
Current situation
The year-end rally couldn’t get going on any large scale, following on from the very strong investment performances seen in 2024. Only a small number of stocks, which include large-cap US IT companies in particular, were able to rise again in December. The global equity market, in contrast, had to relinquish some of its gains despite solid company results. The very high valuation of the US equity market as well as the euphoric mood among investors led us to be a little more cautious in December.
Overall, we expect 2025 will be an investment year with positive, albeit moderate returns. The high valuations as well as the (geo-)political environment may admittedly lead to short-term price falls. We believe, however, that the overall picture looks promising thanks to declining key interest rates and robust economic data.
Last updated: January, 2025
What are the biggest mistakes you can make when investing?
When investing, mistakes can happen which have a negative impact on the accumulation of wealth. Some of the most frequent mistakes are given below:
Acting emotionally
Acting emotionally
Falls in share prices and the resulting losses can create major doubts and lead to panic selling. This is understandable but don’t get carried away by market fluctuations. If you sell your investments when their performance is negative, you’ll definitely have made a loss. On the other hand, if you leave your assets alone or even dare to buy more, your assets could recover. Patience usually pays off.
Avoid making decisions based on emotion!
Waiting for the perfect moment
Waiting for the perfect moment
It’s not just when you buy that’s key, but also how long you hold on for. Long-term strategies usually pay off better than waiting for the right time to invest. If you wait for the perfect moment, you might miss out on valuable market opportunities. Or put briefly, it’s time – not timing.
frankly Tip: Getting in and out at exactly the right moment is a pipe dream. This is why we recommend paying in your planned annual pillar 3a contribution on a staggered basis and investing it, e.g. by standing order. This will smooth out the cost price and stop you from letting your emotions get the better of you.
Forgetting the costs involved
Forgetting the costs involved
| High costs can significantly reduce your return. Remember, every franc you save is money that you can reinvest and make work for you. Take note of the costs associated with your investments. |
Insufficient diversification
Insufficient diversification
| In order to spread risks, you should invest your assets in different companies or securities. frankly offers you various investment products which are invested in different asset classes. Since these investment products are already very well diversified, you don’t need to be an investment expert and spend a lot of time putting together a suitable portfolio. All you have to do is decide how much risk you want to take and choose the right strategy. It’s as easy as that. |
