Alternative investment options as the French economy stalls

Alternative investment options as the French economy stalls

The goal of all investors is to make a profit as they can continue to increase their assets despite the fact that France is not yet in a state of ideal economic growth. Fortunately, there are a number of alternatives such as investment options spanning the growth stock market and the commodity market. However, more information about these alternatives will be provided later in the table of contents of this article.

Raw material

Invest in goods it is the first alternative that any investment expert advises investors in most economic situations (stable or unstable). Indeed, their values ​​(costs) have a reputation for withstanding various economic storms. The best thing about commodities is that their value goes up, not down. Can’t you see that this is the most sustainable and profitable investment sector that investors should turn to, especially at this time when the French economy is stagnating.

Therefore, more specifically, gold, oil – raw materials capable of allowing investors to always continue to multiply their profits. This is true for investors with large funds. Of course, there are several other commodities that investors can bet on to keep the money flowing. These are coal, aluminum, gas, uranium, etc. The advantage of raw materials is that they are long term investment. Especially since the French economy is in stagnation, this sector is becoming more and more attractive to investors.

Bitcoin and Cryptocurrencies: Important Investment Alternatives

However, on the question of the alternatives that French investors have at this time when the French economy is stagnant, several studies encourage investment in cryptocurrencies (Bitcoin in particular). In 2021, for example, when the French economy was hit by inflation, bitcoin and several cryptocurrencies continued to rise, which was a big advantage for investors who were investing at the time. If, during this rather harsh period, bitcoin was an alternative to commodities (like gold) as well, then what would it be now, with the French economy stagnating, an advantage or an investment alternative more than ideal for investors.

With this in mind, Maxim Manturov, Head of Investment Advisory at Freedom Finance Europe, says: “If we compare the situation in the summer of 2021, when bitcoin rose in price on inflation expectations and was to some extent a temporary digital alternative to gold, and the current situation, one important difference should be highlighted: on March 15, the Fed began the process of raising rates and ending quantitative easing, which was the fundamental reason for all the growth of bitcoin and cryptocurrencies over the past 2 years. And with higher rates, an asset class like cryptocurrencies may be less attractive. Gold, in turn, rose due to geopolitical risks and rising inflationary expectations in this context. And in general, stocks as an asset class may even be more attractive in the face of rising inflation..”

Investing in the Stock Market: Rising Stocks

Well, one of the best alternatives for French investors to keep growing their returns during a stagnating economy is to bet on stock market investments. This is a fairly broad sector, but growth stocks and cryptocurrencies are particularly recommended.

A share is, first of all, a part that a company decides to put on the market, or even a part of the company’s title, which allows the investor to become a direct shareholder of the company. By choosing this more suitable alternative during the stagnation of the French economy, investors have no problem getting the right to dividends (profit received by the company’s shareholders).

But be careful, such stocks should be chosen because they have a high rating. Essentially, investors should be buying growth stocks, not the other way around. Of course, the acquisition of these shares can be made in the primary market (purchase of the company’s shares during its IPO) or in the secondary market (direct purchase of the company’s shares already on the stock market).

To bet on this alternative means to benefit more from attractive returns in the long term, since these assets can generate returns from 10 to more than 30 years. This investment alternative is showing good results, as confirmed by AMF.