Financial markets at the highest levels, before an uncertain 2022: what to do? Advice from wealth management consultants

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Inflation…

We remember those experts who told us about temporary inflation, obviously, of a few months. They now certify that prices will continue to rise in 2022. Already considered historic across the Atlantic, this price increase leaves their respective governments with no real solution. And this runaway inflation is already coming to Europe. No miracles, anti-inflation investments don’t really exist. While some experts advise taking even more risks to cope with this inflation, others suggest just the opposite. It is up to you. Check your risks well in all cases.

Stock market record

The CAC40 continues to grow, already + 27% from the beginning of the year. Although asset management professionals are confident (they still are, otherwise all savers would withdraw their funds!), Some clouds seem to appear on the horizon: between the 5th wave, inflation out of control, disruption of supply chains, increase in interest rates, etc. The list could be very long. It would probably be time for savers to put in some hot profits.

End of the year, run out of your capital gains allowance

Life insurance : Like every year-end, if you have not fully used your life insurance capital gains allowance (€ 4,600 / € 9,200) and you notice significant capital gains on your units of account, it is obviously time to make a partial redemption on yours. contracts invested primarily or 100% in units of account. Of course, you will not make your profits on your contracts invested primarily in euro funds. The best time to do this is rather early in the year. The well-informed saver has a life insurance contract invested 100% in euros and a contract 100% in units of account. This allows him to make optimized partial redemptions and not to mix the two pockets. You can consult our selection of life insurance contracts that allow you to invest 100% in a euro fund, it is possible, despite what many savers still think. Therefore, Gilles Belloir, managing director of the online broker Placement-direct.fr, recommends eliminating the capital gains before the end of the year. Regularly make a partial redemption at the end of the year, within the limits of your capital gains allowance, to avoid ending up with a contract with too many capital gains when the contract is fully surrendered. This is also the opportunity to better organize your savings (euro / UC fund fraction) and to distribute them on more efficient and less expensive life insurance contracts.

account titles : if you have some lines at a loss (you never know), it will be time to sell them, even at the cost of buying them back the same day. But the materialization of the losses will allow you to offset the capital gains realized on other lines. It’s up to you to cook so as not to find yourself with a large sum of capital gains to declare to the taxman.

PEA : realize your capital gains according to the rules of prudence, but obviously no withdrawal is to be made.

Unit of account, risk reduction!

You know the stock market adage, trees don’t rise into the sky. Well … For the moment, the financial markets are on the rise in the face of this absolutely colossal inflow of liquidity. The market is in the form of bubbles, no offense to many analysts. There will be negative shocks, that’s for sure. The watchword is therefore diversification to reduce risks. Thus, Nicolas Chabanne, of Athena Patrimoine, a renowned Lyon asset management company, in an information letter sent to his clients, confirms that it is advisable to diversify your investments to reduce risks.

To diversify?

It consists of investing in different media within the chosen envelopes, in different sectors, in order to limit the overall risk of your portfolio. In fact, if you focus your investments on a few stocks, you concentrate the gain but also the risk. In a portfolio it is desirable to have a certain number of lines to diversify: the more the number of lines is increased, the more the risk is reduced (within a certain limit).

All-round diversification

Diversification has many faces; diversification of business sectors: energy, raw materials, industries, consumer goods, healthcare, consumer services, telecommunications, community services, financial companies, technologies, etc .; but also diversification of geographical areas: Europe, Asia, United States… Keep in mind that if you buy foreign securities, you must accept the presence of an additional parameter: that of the exchange rate, since the currency is different. In this case then include an additional risk.

Securities account, PEA: 25 separate lines

There is no ideal number of lines, however a diversified portfolio of 25 stocks is often considered to be well diversified. If there are fewer lines, the risk is concentrated. If there are more, the portfolio disperses and monitoring its overall evolution becomes more difficult. Beware, however, in the context of a securities account or equity savings plan, for example, this diversification multiplies stock market transactions, and therefore transaction costs. If you want to diversify your portfolio in a single transaction, you can for example buy an ETF.

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