25 y/o first time investor here. I have some cash lying around and cannot decide between investing in stocks and putting it in a EU bank account that offers 3.75% annual interest.
Investment in stocks would have been a no brainer if I did not have to withdraw the entire sum in around 8 months from now. Even with the 8 month deadline, I would have invested in stocks but between the US elections in November and a jittery market, I feel the future is even more volatile.
It feels like a major market correction is coming. The first week of August showed how uneasy the market feels. While AI is undoubtedly going to get bigger in future, many will agree that the tech stocks are overvalued today.
If the market correction comes in the next 8 months, I will be screwed. Particularly so if the crash happens in Q1-Q2 2025 because I will need to withdraw my savings no matter what by H1 2025.
Getting an interest of 3.75% seems like a better deal. What are your thoughts? Are there any other investment options I should look into? I am a beginner and F&O seems too advanced for me.
Edit for context: I put 80% of my savings into stocks in the first week of August (a rookie mistake) and made a decent profit of 10%. Sold all the stocks last week. That has made me a bit greedy and reckless I guess. By putting the money into a high interest fixed deposit, I would be assuming that a market correction will definitely happen in less than 8 months from now, which is a bold assumption (and hence the confusion).
Leave a Reply