Make money with Cristiano Ronaldo

You can make a lot of money in stocks – but you can lose a lot of money just as much. Should I still dare? And isn’t it too late to get in? With “Without shares it will be difficult” there are current topics and trends on the stock exchange every weekend in the MOPO. This time it’s about VW, the so-called sector rotation, colonial trade and the big world of sport.

1. Stock market: SPAC Attack

SPACs are all the hype on the stock market, especially in the US. This year alone, 1000 SPACs are going public. They will make up the majority of all initial public offerings. For comparison: There are a total of 5,000 listed companies in America. But what are SPACs anyway?

A SPAC (Special Purpose Acquisition Company) is a shell company that is put on the stock exchange as an empty shell. The goal: to use the money from the IPO and additional debt capital to take over another company within two years and thus bring it to the stock exchange. Virgin Galactic (space travel), DraftKings (sports betting) and Playboy are examples.

Caution is advised as an investor. In recent years, the return on SPACs that have successfully taken over a company has only been minus 20 percent. Regular IPOs brought it up 37 percent in the same period. It is also doubtful whether there are enough suitable takeover candidates. The SPAC hype could be a sign of a speculative bubble.

2. Stock Picking

Most and often the best stock market stories are about specific companies. Is that why you should also do stock picking, i.e. invest in individual stocks? Or does it make more sense to rely on ETFs that contain many different companies?

The answer is clear: financially, it is not a good idea to just bet on individual stocks. Even the record of absolute professionals looks poor. In the last eleven years, only seven percent of active fund managers managed to achieve a result that was better than the index of their respective comparison market.

Stock pickers have a slightly better chance at the moment. The sector rotation (the alternation of booming industries, editor’s note) is reshuffling the cards. With the shift of capital, especially from tech stocks to more classic value stocks, they could exceptionally perform better in the short term. In the long run, however, an ETF on an index may be a little more boring, but financially the better choice.

3. Is VW now a Tesla hunter?

Volkswagen is writing the story of this stock exchange week. The share rose by around 15 percent and drove the DAX to new records. VW is again ahead of SAP and is currently the most valuable company in Germany. What happened?

VW announced its plans for the future at a “Power Day”: The company is fully committed to e-mobility and is aiming to be number one worldwide in five years’ time.

To this end, VW is investing in its own battery plants and charging infrastructure. The IT department is also expected to grow to 10,000 employees. That would make VW one of the largest software companies in Europe.

You might also be interested in: Equity trends: Flying towards the future in a taxi?

These plans were well received. In the American stock market media, VW was portrayed as innovative and future-oriented. The carmaker could soon overtake Tesla in terms of delivered electric cars. The share is relatively cheap: The market cap (total value of the shares in circulation in a company, editor’s note) of VW is still only a quarter of Tesla.

This led to a surge in additional demand, especially from small investors in the USA, for VW shares. The stock market story is currently turning from “diesel scandal” to “Tesla hunter”.

4. The Netherlands – out of the crisis faster?

Where were stocks actually invented? In the Netherlands! In 1602 the first shares were issued to finance the extremely risky colonial trade. If the ships from East India came back loaded with spices, a “peppery” dividend was paid.

The Dutch DAX is called AEX. With Unilever, Shell, Prosus and ASML, there are four companies in the index whose market cap is greater than that of VW. They are joined by Heineken, ING, Philips and Adyen. Why is that interesting?

Dutch companies are competitive and spread across many industries. This can be seen in the AEX, which has increased by eight percent since the beginning of the year. You can bet on further growth with an ETF.

The Netherlands is big enough to compete and small enough to be agile. One example is the vaccination campaign. Although the start was late, all citizens should be vaccinated at least once by the end of July. Our neighbor could get back on track faster and experience a post-corona upswing.

5. Buy ManUnited, Dortmund and Formula 1?

Professional sport is the great global emotion and attention machine. Since Wednesday there is an ETF with which you can bet on the sports biz. The “MVP ETF” invests its investors’ money in teams such as the New York Knicks, the Atlanta Braves, Manchester United, Fenerbahce Istanbul, Juve or BVB, in entire leagues such as Formula 1, in the media and in sportswear.

You might also be interested in: Stock trends: Monopoly in real life

That could be a good idea because, according to a study, the global sports market is growing rapidly. The reasons: Sports teams are being traded at ever higher prices, TV and streaming rights are becoming more expensive in the battle for our attention, and the sports betting business is being further legalized in many countries. The final boost could come with the return of fans to stadiums around the world.

Impulse buying is often a bad idea and can lead to a hangover. There is no danger of this this weekend: The “MVP ETF” is currently not yet offered in German trading apps. But you should keep an eye on the sports market.

Nobody can say whether a stock is going up or down. But what we can say for sure: the stock exchange produces exciting stories every day. We tell about this every morning Monday to Friday in the “Without shares is difficult” podcast: ohneaktienwirdschwer.de and https://sptfy.com/i3YH

–