These are the safest and the least safe stock markets

Dusseldorf Diversification is one of the most important topics for investors: you should therefore focus on different asset classes and spread your investments widely.

The idea behind it: If you spread your money across multiple currency areas and sectors, your portfolio should fluctuate less in value because the movements balance out. On the other hand, anyone who relies primarily on stocks from one country is taking on a higher risk.

Analyst Pascal Kielkopf from the family office HQ Trust has now calculated in which countries the risk of fluctuation (volatility) is greatest and smallest. To do this, he calculated the average volatility of a total of 50 stock indices over five years: that of the global stock market barometer MSCI ACWI and the monthly euro returns of 49 individual MSCI country indices. These each represent 85 percent of the market capitalization of the local stock markets.

The result: The most volatile country indices come from emerging markets. Surprisingly, it is also the “safest” stock market.