Choose shares that are undervalued.These are shares whose price/profit ratio is lower than 10. You divide the share price by the earnings per share. The latter is to look up in the annual reports and many stock market pages. Do choose shares whose price has not fallen significantly in the last year, which may indicate a profit decline that has not yet been processed in the last annual figures.
For the next five years you have to count on a decline in the stock market.So it’s not a good time to step in, unless you’re handy with options to cover you.
If you do get in anyway, take very decent companies that have had a lot of dividend (Shell) for more than 20 years, and are in branches that are not very cyclical, such as food (Nestle, Ahold), and have a very diversified market, A.O. Asia (e.g. Heineken).You can then hope that the drop in prices will be more than offset by the dividend paid. I myself have my doubts.
Over 10 years, hopefully the low point of the forthcoming crisis is over, and we are getting a rising market again.Then you can partly trade your safe shares for strong growers to make more returns. In a good market everything rises basically, so you run low risk.
You can also start running at risk and try to get a good price gain with special companies.
Then you could buy decent companies that have a good future perspective, but are also a takeover candidate, such as Galapagos.
Or strong growers with huge market potential, which are likely to attract little from a crisis, such as Takeway and possibly SBM.
Or companies that benefit from a significant stock market crash, such as Flow Traders.
You can also start investing outside the euro area and bypass the very fragile euro.I mentioned Nestle already.
Then you might think that Nokia is going to take advantage of the objections against Huawei as a 5G supplier.
Or to decent Russian companies such as Yandex and Sberbank, especially if you think the sanctions against Russia will disappear.I have already earned a lot of it, but I really expect a great deal in good news. Of course, such a share (temporarily) collapses in an international crisis around Russia, so beware!
In any case, it is a bad time to buy some highly undervalued shares, the stock market is far too nervous.Then the real value soon loses the sentiment. And when the fair is turned down, the weak brethren are going down the most, even though they are already undervalued.
But my advice is to stay on the side until the stock market has fallen sharply, if you are new to investing.
If you have money that you can miss for 10 years or more, you can now better put it in a well-located little house and rent it in the free sector.That the housing market is also worse, you don’t notice the rent, and that housing market will also attract in the long run, especially for desirable houses.