German capital markets expert Jan Viebig has criticized the prevailing investment habits of domestic savers, arguing that their preference for guaranteed products stems from a failure to grasp the relationship between risk and return.
In an interview with Handelsblatt, Viebig suggested that this risk aversion is misplaced and that new investors would be better served by starting with exchange-traded funds (ETFs) rather than seeking capital preservation through low-yield instruments.
Viebig, regarded as one of Germany's most prominent investment professionals, contends that the widespread demand for guaranteed returns prevents German households from participating in long-term market growth.
He advises beginners to limit their initial exposure to diversified ETFs, which offer broad market access with lower complexity than individual stock picking.
This approach aligns with a broader trend of retail investors turning to passive strategies, driven by digital platforms and social media discussions on platforms like Reddit and YouTube.
The expert's comments come as German retail investors continue to favor safe-haven assets, a behavior that has persisted despite years of low interest rates and inflationary pressures.