The corona crisis has caused a lot all over the world. This can be clearly seen, for example, at fairs where more and more people are found. From the investigation of Dutch Authority for the Financial Markets (AFM) On average, one in five households in the Netherlands invests. That is an increase of no less than 11% compared to 2019.
Increasingly, ordinary Dutch people choose to bet on the stock market, an investment in CFDs or multiple actions. Which group of Dutch people invests the most and what is sensible for 2022 in the field of investment?
More money left over from the pandemic
To see how the crypto, stock or CFD market prices are doing in this new year, it is good to know where the price height is coming from today. Corona has played a major role in the sudden increases in various prices. Where things seemed to be going in the wrong direction at the start of the pandemic, in February 2020, the various rates soon recovered. Due to the economic crisis, major investors and entrepreneurs first decided to switch from the stock market to the crypto market. With the depreciation of the shares, they wanted to see what the decentralized did cryptocurrency could mean to them.
Due to this massive change, prices rose in no time, which was not lost on the ‘normal’ Dutch citizen. Of course, the positive coverage of cryptocurrencies in the news also helped many people take the plunge. Add to this that a large portion of the Dutch had a lot of money left over due to the lockdowns and you actually have no reason not to invest in crypto. The economy also recovered faster than expected, drawing attention to other stocks and CFDs as well. In short, the corona crisis has had a positive impact on the investment market and the number of Dutch people investing.
Especially young people who choose to invest
What is interesting is that the same AFM study shows that it is mainly young people who take the plunge. That is not very strange; most young people do this to accumulate some wealth. Today you receive almost nothing as a bonus or reward when you leave your savings in the bank. For larger amounts, you even have to pay money to keep it there. That, of course, is not very interesting for people with a little savings. If you still want to earn something with your money, it is advisable to start investing. This increases the chance of getting some extras for your estate or pension.
It is cryptocurrency in particular that is attractive to young people. They often see ads and positive messages from so-called influencers, athletes, and other famous people who have earned something from crypto through social media like Instagram and Snapchat. In addition to crypto, 31% of young people invest traditionally, that is, in stocks, bonds, CFDs or funds. Investing in CFDs is becoming more and more interesting; especially when you do this through a trusted broker like more500† 42% of young people invest both traditionally and in cryptocurrencies.
What will investment be like in 2022?
The cryptocurrency market and the stock market can never be completely predicted. That means we never know exactly what prices will be like. However, speculations can be made, which many experts or professionals in the investment field are happy to do. Speculations for 2022 were initially positive, especially for the various cryptocurrencies. However, the current tension between Russia and Ukraine seems to put obstacles. Only due to the threat of a possible war, European stock markets fell sharply earlier this month. For example, the AEX Amsterdam index soon had to deal with a 2% price loss and we see that the price of bitcoin has dropped considerably in two weeks.
This mainly shows that cryptocurrencies are not the solution when there are geopolitical tensions. The pandemic and the economic crisis that followed created uncertain times, in which people began to invest in cryptocurrencies. Now that we are facing a threat of war, things are a little different. The only financial haven that can withstand this is the precious metal gold. The price of gold has reached its highest level since June 2021. That does not mean that you should sell your cryptocurrencies quickly; the greatest effect can be seen in the long term. What you can do is strengthen your investment portfolio by investing in gold or a CFD on gold.