How will stock market trading fare in 2024? Trends.be asks stock market observers about their preferred securities.
This week: Ben Granjé, the managing director of the Flemish Federation of Investors. With a background of more than two decades in the financial sector, Granjé has gained extensive experience at Morningstar, various banking institutions and an investment fund. He received his education in both Belgium and the United States, culminating in a master’s degree in psychology. Granjé is committed to financial health by promoting education and inclusivity in a community focused on knowledge sharing.
1/ Yourself
VFB is not a consultancy that tells you which golden share you should buy now. It is a meeting place for the exchange of experience and ideas, a learning environment for determining your (financial) future and an interest group for individual investors. So my first tip always remains: invest in yourself. Read, learn, talk and start investing as early as possible (while it is never too late). Get your family involved and give your children the tools to realize their vision. There is no better gift, unless it was a first investment. And a membership of VFB, of course. Investing is the most social thing you can do with your money. ‘Everyone can invest’ is our motto.
2/ Global ETF: Invesco FTSE All-World
Some people like to do a lot of analysis, others prefer to invest from the hammock. Both benefit from the golden rule: keep costs low. This ETF (ISIN code: IE000716YHJ7) combines broad diversification with low costs, is tax optimized and accumulates. Set a permanent assignment and forget about it for about ten, twenty or fifty years. Such a strategy is ideal as a first investment, and it may be your last investment. There are of course many ETFs. Find what best suits your circumstances and portfolio (for example, if you need the dividends).
3/ Real estate: Wereldhave
The prices in this segment are heavily influenced by interest rates. This has risen sharply in the short term, causing strong undervaluation to plague the sector. But the peak seems to have been reached, and even if interest rates do not fall immediately (inflation vigilance is required), a recovery in prices is likely – not to mention the nice, stable dividends. Be careful, because a number of companies have choked on their debt ratio, which on the plus side could lead to a wave of consolidation. We also find purchasing opportunities close to home, such as Wereldhave, Aedifica and VGP. A broader spread is possible with listed REITS (real estate investment trusts or real estate investment trusts).
4/ Chips and semiconductors: BE Semiconductor Industries
Whether you are in favor of technological progress or greening, chips are crucial for better solutions. Close to home we know X-Fab and Melexis, a little further away ASML and TSMC. Less well known is BE Semiconductor Industries (BESI), which has already enjoyed a nice increase since the beginning of February and appears to be continuing its momentum. Here too, you can opt for exposure to the sector with a fund or an ETF, to soften the influence of certain geopolitical tensions in your portfolio.
The giant shares of the Magnificent Seven (Tesla, Alphabet, Microsoft, Apple, Meta, Amazon and Nvidia) are already high, and in an ideal scenario we pick them up after a strong pullback based on emotion rather than reason. Dreaming is allowed. But the strength of these companies means that they remain interesting: their products continue to generate returns and, moreover, they are sitting on a mountain of cash. Especially now that interest rates are a little higher, they are getting rich overnight, they can keep the competition at bay (or simply buy them up, if the competition authority allows it) and diversify. We like Nvidia (chips), but that valuation is very high, Microsoft is a permanent fixture in our portfolio, we see Tesla and Apple slowing down a bit and so we end up with Alphabet or Meta. When in doubt, with an ETF on the S&P 500 you suddenly have them all.
Last week:
Read more about the favorite shares in our file
2024-02-19 22:34:01
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