The choice of an investment is decisive for any investor. While trading in Forex or binary options is mainly short-term, making an investment in the stock market is a long-term investment. Moreover, stock market investments are mainly dedicated to big players, with in particular 50 000 € to invest. But the question is, where should we put this €50,000 for 2016? Here are our tips
Always diversify your portfolio
The golden rule of a good investment is not to limit yourself to a single asset. Especially for 2016, a few companies stand out on the stock market, but eggs should never be put in the same basket. The best investment choices can be found in the new technology, real estate, transportation, luxury and organic sectors, among others. To properly invest the €50,000, the trick is to choose shares of companies operating in different sectors of activity.
For example, we can place:
- 10,000 € for the Hermès house, whose turnover is expected to increase by 10% in the coming years;
- 10,000 € on Lagardère, which has been able to pay very regular dividends for several years, and whose yield is in the 5% range;
- 10,000 € on the real estate developer Nexity, which managed to maintain the distribution of a €2 dividend even during the crisis, and whose turnover for the 2015 financial year amounts to around €2.9 billion;
- 10,000 € for Dassault Aviation, which is revitalizing to the optimal level for 2016;
- And the remaining €10,000 for the Gorgé Group, which specializes in 3D printing and whose turnover continues to soar.
Aiming for the long term
But of course, investing €50,000 should not be done lightly and, before any decision is taken, it is essential to study the market carefully. In terms of financial investments, looking at the long term is indeed carried out over a horizon of 10 years and more, and it is essential to choose a company that has the capacity to last for such a long time. First and foremost, it is necessary to verify the company’s financial health during its years of activity, and in particular to rely on its net operating results. It is also necessary to ensure a good dividend policy and in particular to verify that dividends are both regular and increasing. We will only invest if all the conditions are met.