Alternative investment options as the French economy grinds to a halt

Alternative investment options as the French economy grinds to a halt

The goal of all investors is to make a profit, so they can then continue to grow their assets, despite the fact that France is not yet in perfect economic growth. Fortunately, there are a number of alternatives, such as investment options covering the emerging stock market and the commodity market. In this regard, more detailed information about these alternative options will be provided below in the content of this article.

Raw materials

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

Therefore, more specifically, gold, oil are raw materials able to allow investors to always continue to multiply their profits. This applies to 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 represent long-term investments. As the French economy stagnates, this sector is becoming more favorable for investors.

Bitcoin and Cryptocurrencies: Important Investment Alternatives

Also, regarding the knowledge of the alternatives that French investors have at this time when the French economy is stagnant, several studies encourage investments in cryptocurrencies (especially Bitcoin). For example, in 2021, when the French economy suffered from inflation, Bitcoin and several cryptocurrencies continued to rise, which was a great advantage for investors who invested at that time. If Bitcoin was also an alternative to commodities (such as gold) during this rather severe period, what would it be now that the French economy is stagnant, an advantage or an investment alternative more than ideal for investors.

With this in mind, Maksym Manturov, head of the investment consulting department at Freedom Finance Europe, says:If we compare the situation in the summer of 2021, when Bitcoin was growing on inflationary expectations and was to some extent a temporary digital alternative to gold, and the current situation, it is worth highlighting one important difference. On March 15th, the Fed began the process of raising rates and ending QE, which has been the main reason behind all the growth in Bitcoin and cryptocurrencies over the past 2 years. And with higher rates, an asset class like cryptocurrencies can be less attractive. Gold, in turn, rose in price due to geopolitical risks and rising inflationary expectations in this context. And in general, stocks as an asset class are probably even more attractive in the face of rising inflation..”

Investments in the stock market: the growth of shares

Well, one of the best alternatives for French investors to continue to increase their income during a stagnant economy is to bet on investing in the stock market. 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 title of the company, which allows the investor to become a direct shareholder of the company. Choosing this more acceptable alternative during a period of stagnation in the French economy, investors are without problems entitled to dividends (profits received by the company’s shareholders).

But be careful, such stocks should be chosen considering the fact that they have a high rating. Basically, investors should look for growth stocks, not the other way around. Of course, the acquisition of these shares can be done in the primary market (buying shares of a company during its IPO) or in the secondary market (directly buying shares of a company already on the stock market).

Betting on this alternative means benefiting significantly from attractive returns over the long term, as these assets can generate returns for 10 to more than 30 years. This investment alternative has a strong track record, as confirmed by the AMF.