Stock market, risky investment? However, it is the best investment in the long run!

The stock market is often considered a risky investment these days. And this creates widespread fear, especially among uninformed investors. For professionals, it is the best long-term investment. Explanation!

According to experts, investing in the stock market is the best long-term investment

The stock market undeniably involves financial risk. A parameter that uninformed investors fear. According to recent surveysThe French prefer to turn to safe investments as Livret A. In the tax household, almost every family member (father, mother, child) has one.

Often, individual investors do not dare to invest in the stock market out of fear. For them, it is synonymous with risk. Due to lack of experience and information, they prefer not to venture into unknown territory. A wise choice from a financial point of view. Only the most ambitious invest stocks or bondsand can benefit from it.

Although the capital placed in Livret A is guaranteed, it yields few returns compared to the stock market. Paid 3% (to 2025) this regulated brochure preferred by the French shows low long-term profitability. Within 40 years, your €100 (invested in the 1980s) would not reach €400. However, if it were an investment in the stock market, the potential profits could be up to more than €10,000.

Not even a real estate investment in Paris in 1983 can achieve that performance in 40 years with an initial investment of €100, or around €5,240. Despite this, rental risk remains low compared to stock market risk.

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These points to meditate on before investing in the stock market

According to Christian de Kerangal, Director General of IEIF (Institute of Real Estate and Land Savings): After a long time, you are almost guaranteed to make money. On the other hand, if it is money that we will need in the short term, it is better to go to other investments.”

Unpredictable dips in the stock markets can change the situation if necessary. Despite this possibility, CAC 40 kept his head above water. Remember that this is the main stock index of the Paris Stock Exchange. It basically reflects that the performance of the 40 largest and most traded stocks (listed on Euronext Paris).

Nowadays, you can easily invest in the stock market through a Savings Action Plan (PEA). Almost all banks offer them. Contact a financial advisor before opening a PEA by filling out this form. A necessary step to refine your investment strategy.

Ideally, set limits on the amount of risk you can tolerate. The same goes for the amount you are willing to invest. The best strategy is to invest in stocks or bonds of various promising companies. By adopting this approach based on diversification of investmentsrisks are shared more.

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