It is not a secret that since the Financial Crisis of 2008, 2015 was pretty much the worst year and from the predictions the stock analysts have made, it was inferred that 2016 was not going to be any better either. The predictions unfortunately, actually turned out to be pretty spot on as we have already entered into the last month of the first quarter of 2016 and things do not seems to be stabilizing or getting any better than the previous year.
2015 was not the best year not because it witnessed a heinous performance from an investment standpoint, rather it was merely because the markets had not seen a meaningful down year in a number of years. The major reason behind the declining stock markets, as we all know, was the steep decline in oil prices which has affected all the oil manufacturing countries and nations.
These are hard times, especially for investors as the stock markets shake the entire world by crashing down one day and then rebounding the next.
Though the overall prevailing conditions of stock markets seem to be pretty disappointing and discouraging for investors to put in their investments in Dubai, it needs to be noted here that there are actually quite a few large subsets of stock that are working very well against the general flow. There are a number of options to invest in which have promising short-term gain catalysts alongside a longer-term growth potential.
If you are brave and a risk-taker by nature, here are a few options where you could buy individual stocks and shares.
Fast Food Chains:
What name springs to mind when a fast food chain is talked about? Probably McDonald’s, because that is how much of strong contender they are in the market. According to Chris Beauchamp, a senior market analyst at IG Index, McDonald’s is an old favorite of investors and is still a good option to invest in.
Though rumors about this US-originated chain keep on being passed around that they will be losing their market share in due time, it does not seem to be happening in the near future. According to their official reports; their global shares have risen 5 percent over the last year.
They offer an attractive yield of 3.05 percent a year, which is a lot when compared to the faltering conditions of stock market.
Apart from McDonald’s, PepsiCo is another good option to invest your money as they have shown a yield of 2.90 percent a year.
Though the very idea of investing in a household company does not seem attractive or rational, wait for it, it is actually a very sane and safe choice to go with.
To invest in a household goods giant such as Reckitt Benckiser Group which has innumerable big everyday brands like Dettol, Finish, Strepsils, Vanish, and Harpic, can benefit you in the long run. The company’s share prices have shown a pretty amazing growth as they have risen over 90% over the past 5 years. The company pays 2.20 percent yield and dependable and promising revenue streams which makes it a compelling option for investors.
Unilever is a rival of Reckitt which has made a pretty good name for itself in the international community. Its top brands include Vaseline, Liptons, Wall’s, Dove, Flora, Hellmann’s, Knorr, Timotei, and Comfort.
Philips again is a good option to invest in for stocks as it has shown a steady growth over the last couple of years.
Utilities and Insurance:
These companies have been showing commendable resilience even in such a critical stock market situation, as they provide cover for the daily and basic needs of humans. A situation can go from bad to worse, but everyone will always need electricity, water, and gas.
Therefore investing in utilities or insurance companies can be a good choice for you while exploring your options. Their prices don’t falter much and almost always show a steady growth over the years.
Much like utilities and insurance, healthcare is one of the stock market options which can hardly ever fall on its face as even in the 2008 recession period, healthcare stocks did not show a significant difference as compared to other stocks in the market.
Pharmaceutical and biotechnology firms show long-term prospects and boast strong balance sheets which are everything you want as an investor.
These are a few options that you can certainly take a detailed look at while looking out for investment opportunities this year. The growth shown by these industries is steady and reliable and you can pretty much get a good return on your investment, even in such critical conditions.
Latest posts by Istathmir (see all)
- Rents get more affordable in Dubai, surge in Abu Dhabi - September 28, 2016
- Real estate Revelations: Property Facts about Dubai - May 4, 2016
- The Brexit Reality: Will UK be leaving European Union? - May 4, 2016