Home » AFM warns young investors: ‘Could cause great disappointment’

AFM warns young investors: ‘Could cause great disappointment’

by archyw

The stock markets have been writing record after record for a long time. According to the Netherlands Authority for the Financial Markets, overconfidence and fear of missing the boat are therefore lurking – especially among young investors. This could turn out to be a major disappointment for young, inexperienced investors, the AFM warns in the Nederlands Dagblad this morning.

The AFM says it receives many signals about students who borrow maximum from DUO for their student finance, but then use that money to invest. “We do not have a crystal ball and certainly do not want to sow panic, but we think it is good to warn that the stock market has good and bad times,” said Tom Smiers of the AFM in the Nederlands Dagblad. “Now it sometimes seems that the stock market cannot go down.”

Since the corona pandemic, the number of private investors has been increasing. Last year, according to Smiers, the number of investing households rose by about 11 percent to 1.6 million households. Two-thirds of novice investors say they hope to bring in more money this way than through savings. Savings currently yield hardly any returns.

Average 5000 euros

More people also started investing because of corona. When the corona outbreak started, prices fell sharply. A lot of people got in at that time. New investors put in an average of 5000 euros.

Corona also left people with more time and money. After all, we could go on holiday less and less. This has also brought individuals onto the path of investing.

Read Also:  Companies are looking for fresh money in the corona crisis

These novice investors explain why they started investing:

0 comment

You may also like

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.