Choosing the right investment strategy is always a personal decision

Even after you have sold your property, you still have several important decisions to make. It is important to think about what investment options are available to you outside of direct investments in property. Maybe you will finally be able to make a larger investment or fulfil a long-held dream? If you will not be using the liquid funds immediately, however, other questions often crop up: is it worth making an investment to increase your standard of living, to retire earlier or to cover the costs of your own further education or that of your children?

Beyond such very personal goals, there are various investment alternatives and investment options to choose from: from traditional financial investments such as overnight money or time deposits, to stocks and funds or alternatives such as precious metals, to reinvesting in real estate. And there are also various options when reinvesting in real estate!

Carry out a comprehensive analysis of your situation

You can achieve your personal goals by investing in a range of different investment solutions. Professional advice is essential – particularly when selling property it can be particularly helpful to have an overview of your situation. This usually also includes an analysis of your personal investment situation. This is also often a good time to check your contingency plans and adjust them if necessary.

Check out current investment opportunities

Due to globally increasing interest rates (see graph below), the range of alternative investments options available has also increased. This has happened despite the environment being marked by many challenges. The phase of negative interest rates in Switzerland, which lasted seven years, has now come to an end. Of course, reinvesting in property remains an alternative worth exploring and there are many different options available here too.

Invest your sales proceeds

First, you need to answer four specific questions:

• What are my investment goals?
• What amount would I like to invest – all the sales proceeds or just part of them?
• How long should the investment be for – when would I like to have my money available 

     again?

• Do I want to work out which investments to buy and sell myself or do I want to delegate 

     these decisions to someone else?

Once you have answered these questions, you should take a closer look at the different investment options available to you. Which types of investment do you find interesting and which meet your needs?

We recommend seeking out competent and reliable advice. This will help you to evaluate the advantages and risks of the various different investment options, pick out the investments with the highest returns and the investments that best correspond to your personal goals and individual investment profile. This way, you can make the best decisions for you.

The current situation means that active management is required

The range of possible market developments in the future is very wide and investors will need to bear this in mind in the coming years. 2022 represented a turning point for investors. A long period of decreasing interest rates and accommodating central bank policies came to an end. The coming years are set to be characterised by deglobalisation, high inflation, more restrictive central bank policies and significant challenges for companies. As such, preserving assets will become the main goal for many investors and active asset management will be a key factor for success.

The interest rate reversal has brought about 
opportunities for investment

Anyone that is currently selling a property and wants to invest the sales proceeds in the financial markets will find a completely different investment environment. While negative interest rates have marked the past seven years, bonds are once again yielding returns today. This situation means that there is a range of options for anyone that wants to reinvest proceeds from the sale of a property. At the same time, the valuations of all investment classes have been corrected, in some cases significantly, which has created opportunities for new investments. But what does this really mean for investors?

Well, investors with a moderate risk profile should set up their investment portfolio as follows:

• Growth and innovation: around 40 percent of their investments should be in shares, with 

     a clear focus on US shares and Swiss quality stocks

• Consistent returns: around a quarter of their investments should be in corporate bonds, 

     both for high-quality companies and companies in higher interest segments

• Security during crises: another quarter should be in currency-hedged government bonds 

     in both the USA and Europe

• Opportunities in alternative segments: some cash for investment opportunities (listed 

     real estate solutions, alternative investments etc.)

Seek out investment advice

Economic growth, interest rates and the specific returns and risks of investment classes are all fundamental factors that will have a significant influence on the structure of your investment portfolio. As well as long-term trends, short-term trends also need to be considered when making investments so it is important for investors to stay up to date. We always recommend seeking advice from your bank or another professional financial institution. This way, you can make an informed decision about how to invest your money.

Summary

Shares dropped significantly in value during 2022 and valuations also declined significantly. As such, it would be worth investing in shares as long as the economic slowdown does not become more pronounced. Similarly, investments in bonds are an attractive alternative and in view of the recent rises in interest rates they are considered to be a safe investment. It is also a good idea, depending on the market phase, to add some raw materials or precious metals to your portfolio. To make your portfolio more solid during periods of financial turbulence, you should also purchase some low-risk securities. It is important to review your investment strategy regularly and adjust the distribution of your investments across investment classes if necessary.