Advice in turbulent times – Interview with account manager Andreas Stary

In turbulent times on the stock market, investors often seek advice from market experts. What are the most pressing questions for investors and how can they hold their own in the current environment? We spoke to Andreas Stary, customer advisor at Erste Bank Austria, to find out more.

Mr. Stary, how do you assess the current environment for securities?

Volatility on the securities markets has increased significantly. There is a feeling that news is influencing short-term stock market trends even more than in the past. The challenge is to find and maintain a medium to long-term focus in investments.

Two topics have clearly come to the fore in recent weeks. Donald Trump’s actions and their consequences are not only making headlines, but also feature prominently in our consultations. In addition, the issue of rearmament in Europe has been the subject of many discussions.

What questions or concerns do investors currently approach you with most frequently? Has investor behaviour changed in recent years?

On the one hand, there are the price declines of recent weeks and, on the other hand, the issue of rearmament in Europe. In my view, there is no clear answer to the question of whether investor behavior has changed. That depends very much on the respective customer or investor group. I will attempt to provide a rough classification.

Younger investors are much more dynamic and focus on the short term. For example, in addition to funds, the use of ETFs in portfolios is a topic of interest for this customer group. Cryptocurrencies also play a role.

The customer group aged 50/60 and above still relies heavily on personal advice in branches. Security and stability are particularly important to conservative investors. Stability also means having a fixed point of contact in the branch who has been there for as long as possible.

Which investment strategies are currently particularly attractive for your clients?

Negative price developments are part and parcel of investing. We point this out during consultations, and the topic of fluctuations (volatility) is also addressed when creating client profiles. Nevertheless, periods of falling prices often cause uncertainty among some clients, who then question the wisdom of their investments. This cannot be avoided. The only way to address this issue is through consultation. Uncertainty can be seen as an opportunity to review risk appetite and the corresponding portfolio.

How important is ESG (environmental, social, and governance) in consulting practice?

In my view, there is a significant discrepancy between regulatory requirements and the reality of advisory services. I have never encountered investors who have provided specific guidelines for selecting sustainable investment solutions. Instead, they tend to make general statements about whether sustainable products should be considered in the advisory process. Sometimes, asking clients about their desired minimum share in their portfolio can overwhelm them in some cases. Finally, it is noticeable that conviction or belief in green solutions has lost importance.

Do cryptocurrencies play a role in consulting, or are they more of a marginal issue?

Cryptocurrencies are not part of our current product range and are therefore not included in our advisory services. When cryptocurrencies are frequently mentioned in the media, customers sometimes ask questions about them. A large proportion of my client base is made up of people over the age of 60, who tend to have limited knowledge and understanding of this asset class.

ETFs are popular – but when does active management make more sense? Are there clear criteria for when active or passive is the better choice?

Ultimately, it depends on the performance of the respective fund or ETF. Traditional management should be used where active decisions offer a realistic chance of generating additional returns and/or reducing risk and where clear portfolio diversification can be achieved.

What would be your most important advice for investors who want to invest in the capital market now?

Select an investment that suits you (term, risk appetite). Select an investment that you can identify with. If possible, have your own opinion. A combination of a one-time initial investment and gradual additional payments could be a good strategy at present.

 

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