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Stock market – the advantages of staying informed

Even if is not the most media hyped issue off all time in Romania, specialists say that investing in stock market is very suitable for twentysomething investors.

Adi Lupsan, deputy director at Intercapital Invest, recommends this ‘pocket-money spending alternative’, especially now, when it is the best time to take advantage of the low stock prices.

“The stock market has its own cycle. After end-of-the-world type slumps, we see sky high appreciations. They are the most ‘entitled’ to gear up these opportunities and they can do it at a longer time horizon than other investors”, said Lupsan.

The biggest gain is, however the access to live information, apart from the potential material gains.

“How many young investors anticipated in spring 2008 the severe internal crisis we are going through right now? The stock market dropped the first hint in the second half of 2007, and for a young investor the access to this type of information “prepares” him for the future macro perspectives that can influence his life from all points of view, including professionally”, he explains.

Experience is the investor’s greatest asset, even if the financial resources are insignificant.

“Statistically, those who experience a stock market crisis become authentic veterans for the next stock cycles”, said the deputy director of Intercapital Invest.

Alexandru Cristescu, broker at Piraeus Securities said the opportunity of these investments tend to become more and more attractive and real, given the bottom level of Romanian stock market.

“It is not the time for all-time lows and there are big chances to see more of this bearish trend. This is why the investor should not see investing as fabulous earning drivers that could venture them into riskier stocks. They should see stock investments as long-term nest eggs”, said Cristescu.

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