Our tools and areas of expertise are:

•Securities accounts (stocks, bonds, ETFs)
•Life insurance (in euros or in the form of units of account or individual securities)
•PEA (equity savings plan)
•PER (retirement savings plan)
•Real estate
•SCPI

It's important to remember that life insurance, PEAs (equity savings plans), and PERs (retirement savings plans) are simply tax-efficient ways to disguise holding stocks or bonds. The most crucial allocation remains the distribution between stocks, bonds, and cash, based on your desired risk tolerance.

Some remarks on the current situation affecting these different assets:

Bonds
The rapid rise in long-term interest rates has resulted in a sharp decline in bond values. The euro OAT futures contract (ticker: FNH24) represents a bond issued by the French government with a remaining maturity of 10 years. This contract is trading at €123 on February 13, 2025, compared to €170 in January 2022, representing a 28% drop in three years. Such a rout in the traditionally safe bond markets has not been seen since the 1970s.
Many observers believe that long-term bond yields are once again at attractive levels following the decline in inflation, particularly in the US where a 10-year bond yields 4.46% compared to 3.08% in France. Funds invested in high-quality corporate bonds can currently yield around 5%, and those invested in riskier bonds offer the potential for around 8% per year.

Real estate
Real estate in France has been an incredibly lucrative investment that has made millions of households wealthy. Here is the evolution of prices for existing properties in Paris from 1970 to 2022:

















Thus, the real value (after taking into account inflation from 1970 to 2022) of apartments in Paris has more than quadrupled. This is an enormous increase that calls for caution.

In 2024, the decline in existing home sales exceeded 20%. Prices began to fall, particularly in major cities where they had risen the most (Paris, Lyon). Banks, like notaries, anticipate a drop in property prices and are lending with extreme caution; the decline in mortgage lending remains significant year-on-year. Many buyers are waiting for a more favorable economic climate and lower prices to finalize their plans.

SCPI
Highly sought after in recent years, SCPIs (French real estate investment trusts) are now falling out of favor. Several have had to reduce the purchase and resale prices of their shares, reflecting a sharp decline in the value of their assets (primarily office real estate). Praemia REIM, formerly a leading SCPI, is going through a difficult period, with share prices falling by as much as 44.7% for its flagship SCI (French real estate investment company), Primopierre.
Due to the market freeze, those wishing to sell their shares fear they will no longer be able to do so quickly unless they accept a significant discount. The liquidity problem facing SCPIs is therefore massive at present, prompting us to exercise the utmost caution and selectivity. We generally do not recommend purchasing SCPIs at current prices.