June 3, 2020

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How investors start the new 2020 year

How investors start the new 2020 year

The world starts the new year in alarm mode: Donald Trump seems to be able to sustainably damage US democracy, the Brexit is in sight, populists rule in more and more countries. And to make matters worse, the ultimate climate catastrophe threatens. But there are also a good news.

Is the world on the brink again? You could get this impression a year ago. And then things turned out differently, including on the stock exchange. The pessimism of many private investors over the past year has ensured that they have missed the bull market in almost all asset classes. It would be a shame if this happened again this year. It is therefore worthwhile to look at the hopeful topics.

Is the world on the brink again? You could get this impression a year ago. And then things turned out differently, including on the stock exchange. The pessimism of many private investors over the past year has ensured that they have missed the bull market in almost all asset classes. It would be a shame if this happened again this year. It is therefore worthwhile to look at the hopeful topics.

The good news is that the world won’t go down in 2020. There are many positive developments, both in the fight against populism and in coping with climate change. And in terms of the economy, the course is even set for a global recovery. Since the capital market has instead fed an impending recession, which will probably not take place at all, there is still a lot of potential in the current stock market prices.

In this phase, in which there is still disagreement about the further progress, volatility on the stock exchange could increase. But that offers opportunities for targeted picking of stocks and bonds. Of particular interest are non-cyclical growth areas such as the healthcare industry, technology companies with a strong market position or well-positioned trading companies with a strong website. In addition 4 investment ideas:

Edwards: Stable heart valves

The medical technology company Edwards Lifesciences invented the heart valve in the 1960s and is the global market leader here. Edwards benefits from an increasingly older population and the fact that many older people are willing to spend money on health. Sales and profits grow continuously around 15% per year. The stock price chart looks solid accordingly. Nothing will change about that in 2020 either.

MSCI: Profitable index licenses

The MSCI group licenses the use of the indices of the same name and benefits from the growth of the ETF industry. Finally, MSCI receives a hefty license fee from every ETF that tracks an MSCI index. That drives profits and the share price – probably this year too.

Idorsia: New drugs in the pipeline

When the Swiss biotech company Actelion was sold to Johnson & Johnson for over $ 30 billion, the underdeveloped drugs were outsourced to a new company: This is how Idorsia was born. Four drugs are currently in the third clinical phase. The good results from the second clinical phase support the hope that positive news could result in a price jump this year.

Yum! Brands: Attractive bond

The company rightly bears an exclamation mark in its name. Yum! Brands is a leading global fast food chain, which includes TacoBell, KFC and Pizza Hut. The group has issued a bond in US dollars with a current yield of 5.6%. The non-cancelled security offers investors the opportunity to secure a stable cash flow in dollars for the next two decades. Should the Fed cut interest rates again, there will also be price and currency gains.