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Investors should remain calm in volatile markets, but also alert to fraudsters amid the Covid-19 pandemic, the Autorité des Marchés Financiers (AMF) says.

In a notice to investors, the AMF is preaching calm in the face of market turmoil sparked by the spread of the virus and its negative impact on the global economy.

“Some sectors may be affected more than others,” the AMF said. “It is very difficult to quantify the extent of potential losses, and they could only be temporary.”

Additionally, the regulator recommended that investors avoid “hasty decisions.”

“Unless your financial situation, your personal situation or your goals change, do not radically change your investment strategy, even if the markets go down. The consequences could be regrettable.”

“Panic or euphoria are not good advisers,” the AMF stressed. “Choose your investments according to your objectives, your risk tolerance and your investor profile.”

Alongside the impact on investment returns, the regulator also warned investors about possible investment frauds seeking to capitalize on the crisis.

“Events that hit the headlines, such as Covid-19, can be used as a pretext for fraudsters to approach investors,” the AMF said.

“For example, fraudsters could use the internet and social media to suggest that you invest in so-called companies involved in preventing or treating the virus. Usually, fraudsters promise high returns without risk and ask to invest quickly to take advantage of an ‘unprecedented’ opportunity.”