The year 2020 had literally and figuratively made a huge impact on our lives. Having it as a start and end of a new decade, many of us are all looking forward to what we believe a great year to start a business or even making “big” in investments. No one had ever foreseen the impact of the covid19 pandemic, making us postpone our projects and investment plans. To add, experts had been pointing out the UK economy might find it hard to make a revamp and bloom like it always had. Would this mean we can no longer pursue our investment plans?
Well, that might be the case for some but cheer up, we got GRANOLAS!
Here in the UK and continental Europe, we have a new acronym that describes the growth share. The acronym “GRANOLAS” stands for European companies such as GlaxoSmithKline, Roche, ASML, Novo Nordisk, Novartis, Nestle’, LVMH, L’Oréal, AstraZeneca, Sanofi, and SAP.
According to Goldman Sachs, we are seeing companies that will bring us a very reliable result in the coming months. How? These companies’ focus is on consumer staples and healthcare, elevating themselves from technology and luxury goods companies. With that, anyone can expect GRANOLAS to yield 2% to 2.5% reliable dividends and has solid balance sheets.
If we were to measure their conventional earnings or conventional prices, after a strong run, it might appear as expensive. However, in general, it grows earnings per share, has strong cash flows, and in terms of GRANOLAS, it pays progressive dividends. These companies are expected to become solid if global fund managers and other investors will be making the switch for stability.
Possessing such progressive results, we, as experienced or upcoming investors, we are more likely to make a switch with our investment plans. We are all hoping that GRANOLAS will give us that stability, growth in earnings, and stability as our economy bounced its way back. But if we were to compare GRANOLAS’ share prices with the V-shaped economic recovery – it is comparatively weak. But, for those who are taking their chances on the global economic pulse, well, they too are skeptical of having a smooth bounce-back because of it.
While it might be a little favorable with GRANOLAS, it is hard to expect a huge growth. If you are planning on making a switch but not with these companies, don’t worry. I have collected several tips to find that perfect investment for you.
Tips for Choosing Investments
I think if there is anything that will help you make that right choice, that would be the knowledge of these aspects. To help you more with your investment journey, let’s check out the following:
- Identify your needs and goals – it will be a worthwhile experience for you if right from the start, you already know what you want from your investments. Identifying your needs and goals will significantly impact how you will be making your investing plan. Know yourself well, whether you are fearless enough to take risks or it is the other way around.
- Consider your time frame – consider how long you can wait for your money to be back. Your time frame will vary depending on your goals – if you know these well yourself, then you know how long you should be waiting for your investment. Your goals will also impact the type of risk that you are willing to take on. Let’s understand this concept with the following examples:
- You wanted to invest in your pension. If you are saving for this to reach your pension goal after 25 years, focus only on this long term and ignore any short-term effect. Aside from cash savings account that you might have, long term investments give you a greater chance of reaching your goal and beating off inflation.
- You are saving up to buy this house in several years. Having investments in funds or shares is not suitable for this goal. It is because its value is unpredictable; it either rises or falls. It would be better to save for the house through Cash ISAs and other cash savings account.
- Create your investment plan – creating such a plan will help us to identify which among various product types is suitable for us. The rule states to start your plan with low-risk investments like what Cash ISAs has – I think this is a good rule of a thumb that should be followed. If you are ready to accept higher volatility, then it is the only time that you can add a medium-risk investment. You can only consider getting investments at higher risk if you have already strengthened your investment plan along with the medium and low-risk investments.
- Diversify your investments – if you want to raise your chances of having better returns, then you must accept more risk. However, other ways will give you a better chance with returns. You can try by investment in various sectors and investment types in which its prices don’t move in one direction – that is how you diversify your investment. This will help you even out the returns while at the same time achieving growth. Also, it can lessen the risks in your portfolio.
- Decide on how you will be managing your investments – investing requires you’re a little or more of your time and effort. The result of your investment will highly depend on how much of your time and effort you are willing to pour into. If you wanted to become hand-on in your investments, it would be suitable for you to purchase individual shares. If you don’t have much time and have a small amount of money that you can invest, no worries, investment funds will be a great choice. However, if you are not sure about what type of investment you will be getting, it would be better if you will be able to seek financial advice.
There you have it – some of the investment tips to help you through your investment plan. Just like what we have mentioned in the last tip in choosing an investment, if you are unsure, it would be better to ask an expert. While GRANOLAS are showing a favourable outcome, the decision will still be up to you.
Are you ready to take risks, or you needed to hold a little longer before your next move?