PostFinance aims to make investment as simple as possible. Investing money isn’t just for millionaires, but is open to everyone. It’s great when, as in recent weeks, the stock markets become a part of everyday conversation, and a lot of people decide to start investing their money. I’ve seldom received as many questions in my personal circle as over the past few weeks.

I’m really pleased – but I also have some concerns. The goal behind their interest is not always clear. Is it the opportunity to make short-term gains, or simply the buzz?

False expectations

I’m not concerned about the fact that people are willing to take risks when investing. It’s clear to me why people play the lottery, bet on sporting events or visit casinos – gambling heightens the emotions. I’m concerned because I fear people may have false expectations. There are stories doing the rounds of people who’ve become millionaires in recent years thanks to Bitcoin, or people who have made huge gains since the start of the year by purchasing certain equities. There’s a strong temptation to try to copy them.

Of course there are some people who achieve great wealth rapidly. But can a large number of people achieve this? No, the perpetual motion machine still hasn’t been invented, even in the 21st century. Gains can be made on the financial markets only where value is created. Despite the extraordinary measures implemented by central banks and governments, the financial markets cannot operate in a completely different world.

Why am I investing?

Every investor must consider why they want to invest. Do they want to chance their arm and hope for a lucky streak? Or do they want to invest their savings to participate in global economic growth? The answer to this question leads to different conclusions.

Focusing on highly speculative investments is obviously one approach. But people shouldn’t expect this to prove successful in the long term. Distributing money across asset classes and regions and over a longer investment horizon is more likely to be successful long-term. This doesn’t require a huge amount of savings. E-asset management from PostFinance enables everyone to participate in global economic growth opportunities – even with small investment amounts. It’s extremely straightforward and the costs are low.

While this approach is less spectacular than following hyped-up trends, it is usually more successful.