2024-03-15 03:00:00
Investing in the stock market arouses both interest and questions, particularly on the selection of the best companies to maximize returns. In 2024, the financial landscape continues to evolve, offering new opportunities for investors who know how to unearth them.
To invest correctly, benefit from 24-hour support from experts on the number 1 platform in France (Source: financial statements published in October 2022):
IG is a cutting-edge platform on which you can invest in products related to the stock market, raw materials, cryptocurrencies, etc. Investing involves risks, gains are not guaranteed.
How do stocks generate income?
A share represents a share of the capital stock of a company, providing the shareholder with a fraction of ownership. Being a shareholder means sharing in the successes and risks of the company.
Shares are accessible through the public markets, where they are listed on stock exchanges, allowing easy investment for anyone who wants to participate in the capital of a company.
There are two main ways to generate income from stocks:
Some companies reinvest all their profits to drive growth, while others prefer to reward their shareholders with regular dividends.
Investment sectors to prioritize in 2024
The year 2024 has already started off with a bang with the CAC 40 breaking its historic record, well over 8,000 points – the Paris stock market started the year at 7,530 points.
SectorWhy?Technology sectorBig tech companies are under fire from regulators and politicians because of their monopolistic positions and intrusions into privacy. Regulation could affect tech stocks.Grande distributionFranchise and digitalization are the key words of distribution in 2024. Brands must invest massively in sustainability and digital technology to remain attractive.Automobile industryThe year 2024 could see electric cars become affordable thanks to economies of scale, evolving battery technology and the price war initiated by Tesla.Life sciencesThe Belgian biotechnology sector faces challenges such as the lack of qualified labor and increased competition. Government initiatives aim to stimulate employment and growth in this area.Luxury sectorAfter three years of recovery, the luxury sector could experience a slowdown in 2024, with growth forecast between 4 and 6%. Companies will have to innovate to attract consumers, in particular by offering new products.Banking sectorThe rise in rates and the issuance of government bonds are influencing the Belgian banking sector. The big players are showing excellent results, but competition remains strong and financial stability is being tested.Real estate and constructionThe real estate and construction sector is experiencing a slowdown, particularly due to rising rates. The expected stabilization of rates could breathe new life into the market, but challenges persist, notably the labor shortage.Defense industryBelgium aims to strengthen its industrial capabilities in the field of defense. Agreements are underway to stimulate industrial activity, but challenges persist in terms of economic benefits and maintenance.Energy sectorEnergy remains a strategic sector, with a focus on the extension of nuclear reactors in Belgium and calls for tenders for wind farms in the North Sea. The global geopolitical situation influences energy prices.Private equityAfter a difficult year in 2023, private equity could see an improvement in 2024 with a weak but cautious recovery. Positive signals include easing inflationary pressures and resumption of acquisition activities.
To invest correctly, benefit from 24-hour support from experts on the number 1 platform in France (Source: financial statements published in October 2022):
IG is a cutting-edge platform on which you can invest in products related to the stock market, raw materials, cryptocurrencies, etc. Investing involves risks, gains are not guaranteed.
Investment choice: capital gains or dividends?
Your investment strategy may focus on generating capital gains, collecting dividends, or a combination of both.
Before investing, review the company’s financial situation, including its debt, profit margin, and volatility.
These indicators can help you assess the risk and potential of the investment.
The Price Earning Ratio (PER) is a key indicator for assessing whether a company is overvalued or undervalued relative to its earnings. A PER in the range of 10 to 15 is generally considered balanced.
Your personal goals greatly influence your investment strategy.
Whether you’re aiming for short-term gains or planning for the long term, clearly defining your goals is essential.
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