4 safer investments than the stock exchange in times of crisis

stock exchange

Since the COVID-19 pandemic began, exchanges around the world have fallen. This is a predictable phenomenon, as insecurity about what is to come makes people prefer to make safer investments – even if they can pay less.

However, what, after all, is security when investing? Which financial products are most attractive at the moment and why? To help you better understand these concepts, we decided to publish this article. Good reading!

Understanding the Stock Exchange

Before we talk about safer investments, it is important to clarify that the drop in the index of a Stock Exchange does not mean that all investors have lost money. Certain companies are on the rise, as their markets are growing because these companies demonstrate solidity in their communications, etc.

The big question to be successful when investing in the stock exchange is to carefully study the markets, the impact of government measures, geopolitics, etc. It is laborious, not always feasible for everyone. For this reason, the majority hire brokers for this task. Now let’s talk about safer investments.

1. Direct Treasury

Tesouro Direto gained popularity between 2012 and 2016. Due to the high value of the interest rate, this yield yielded up to double digits for investors with almost no risk.

Now, with SELIC far below what it was, this investment yields much less. However, it has high liquidity and can preserve the investor’s purchasing power in relation to inflation.

There are Treasures that are pre-fixed, that is, the investor already knows the percentage he will receive if he redeems the money on the predetermined date. Post-fixed rates follow economic indexes, so they can yield more or less.

2. LCI and LCA

These are Letters of Credit for Real Estate and Letters of Credit for Agribusiness. Like Tesouro Direto, these options are guaranteed by the Credit Guarantee Fund (FGC), in the amount of up to R $ 250 thousand. This means that the investor is insured up to that amount, in case something happens and the issuing agency of these securities breaks down, for example. In addition, these investments are exempt from Income Tax (IR).

This investment does not have a high liquidity, in addition, there is a predetermined date for the redemption of that money.

3. CBD

The acronym CDB stands for Bank Deposit Certificate. It is a possibility of lending money to the bank. The risk of this investment is linked to the possibility of the bank not paying the customer. However, this risk is practically non-existent, since the Central Bank inspects banks, preventing them from operating irregularly.

This investment has low liquidity because for the CDB to have high profitability, the investor needs to leave the money invested for the specified period. The CDB is also guaranteed by the FGC. This investment charges IR on profitability (from 15% to 22.5%).

4. Real Estate

Investing in real estate remains a good investment option, as the need for housing is a reality. In addition, many people are selling their properties, giving rise to good opportunities to buy and finance a property. Therefore, to avoid losses, always seek the best financing rate.

As we have seen, there are safer investments than investing in stocks. However, they are less profitable and are recommended for anyone who wants to preserve their power to buy or add money for another investment, such as buying real estate.

If this is your case, talk to the CrediPronto team. We have expertise in the real estate market and can help you find the best financing options for you to invest in the real estate market.