Is Now The Perfect Time To Invest In The FTSE?
Newspapers and websites are, quite understandably, full of stories focused on doom and gloom, especially in regard to the current state of stocks, shares and investments.
Billions of dollars have been wiped off the stock market, companies are having to alter how they operate, and numerous CEOs and industry experts are predicting that continued uncertainty could cause an array of organisations to collapse.
When put like this, it might seem like a terrible time to start investing money, but could it actually be the perfect opportunity to look at dividend shares? Let’s take a quick look at why now might be the right time for you to take a plunge into the FTSE.
Prospects For Income
There has, within the last two weeks, been an emergency cut in interest rates, and this means that the potential returns from ISAs or general savings accounts are likely to remain close to static.
If you want your investment to rise higher than inflation, it is unlikely that such accounts will be able to give the returns you are looking for.
FTSE 100 dividend shares, however, will give you the chance to see serious returns, particularly in the wake of the market collapsing. And, if you buy a diverse array of shares, you could see even greater financial gains.
The market right now has taken something of a punch to the face, but in the long-term, it will recover, and shrewd investments now could benefit you in years to come.
The FTSE has always recovered in the past – even if it has taken years – but being brave right now could see your investments flourish in the next 36 to 48 months.
Of course, most companies will not show signs of growth during 2020 – the coronavirus has seen to that – but in the long-term, the only way for many companies will be up.
Certain sectors – healthcare and technology, for example – are absolutely certain to enjoy strong and prosperous futures, even if they go through a slump this year.
If you are going to invest, look at businesses that have been growing steadily in recent years, because they are the ones most likely to prosper again once the market levels out. Also, it may be possible to buy dividends now at a far more affordable price than has been possible in a long time.