Useful stock market tips to help you invest this year
The US market has always been a volatile target for investment. However, with a plethora of research, information, data, analysis, advice and tips available to investors today, one could invest in equities and profit considerably from them. Here are some great ideas from experts as to what types of stocks to buy and hold in 2020, for how long and how exactly you can try to take advantage through the US stock market
The Warren Buffet advice: One of Warren Buffett’s prime investing philosophies espouse investing with the long-term in mind. He doesn’t mean forever, in this instance! Instead, he says that the since the market has always had an upward predisposition over a long period, the best technique to invest is to buy good-quality shares at reasonable prices with the intent of holding onto them for a long time.
Diversify: ‘Don’t put all eggs in one basket’ has been the motto of investing in the stock market. While a simple 60% stock, 40% bond portfolio has performed well in the past, investors have been spoiled with its success. Instead, one should now have around 10-15% of their portfolio in cash (which hedges it) and invest in bond alternatives such as real estate investment trusts, master limited partnerships, preferred stocks, high-dividend stocks, etc.
Beware of slow market momentum: Long-term investors should be looking to buy high-quality, blue-chip stocks, especially dividend stocks of good, stable companies in the consumer staples, defense, healthcare, technology, consumer discretionary and the utility sectors.
As for a final piece of advice, investors should ideally take time out to properly thoroughly research stocks, for it could bring them profits. The combination of smart diversification and thorough analysis could beat the market over a period of time.