Stock market crashes are quite common phenomena so fearing these crashes are not needed. Since the Stock Market came into existence , the share prices have always come back roaring as soon as the economic condition improves after a period of depression or recession.
The entire world is going through an unexpected and unprecedented depression due to the prevailing COVID-19 Pandemic crisis. The entire economy of the world is in peril as the pandemic has confined people of finance and economy to their homes. World leaders and economists are optimistic about a W, U, or a V-shaped recovery in the economy as the past events already showcase how long-term stock investors made big returns after a crisis.
When it comes to curating a well-balanced stocks portfolio, perseverance and time play a crucial role. Even identifying avant-garde shares required a lot of time for a very successful investment strategy. The golden rule is that investors must find how to buy shares online at the right time, which is the foremost step to put them on road to become a millionaire.
Usually what happens is that investors buy shares when others are disposing them and selling them, this is a recurring occurrence. The idea is to buy the stock when the prices are at rock-bottom. Moreover, the stock market crash of 2020 gives investors, old and new, a chance to maximise their overall returns for a prolonged time.
People usually pull up the bridge and abruptly stop investing after the market sees a crisis. As of now, there are several profitable Shares which are trading next to infinitesimal which should not be ignored at this moment. Let us take a look at the three affordable Shares that some companies that can procure maximum returns to investors:
1- Bank of Georgia Group PLC: The notable Joint Stock Company has tremendous value, as of now. There is a highly likely chance that COVID-19 will make a dent on the economic growth across emerging markets in the near-sighted future, nevertheless, the long-term aspect is still robust. From 2010-2019, the per capita GDP of Bank of Georgia grew up to 4.8%, as per the statistics shared by the World Bank.
2- Tate & Lyle- It is an amalgamation of enormous dividend-price and smaller earnings ratios. In 2020, the earnings ratio is measured to be 14 times whereas the dividend-price is reported to be 4.4%. Foods & ingredients producers are more resilient than their counterparts due to the downturn in the global economy. The geographical footprint of Tate & Lyle will allow the global supplier of food and beverage ingredients to a recovery.
3- Financial Times Stock Exchange 100: The exchange with massive market capitalization possesses some extravagant defensive qualities. FTSE 100’s packaging solutions are supplied to fast-paced consumer goods companies worldwide. It has a great track record to provide sustainable and innovative products which also suggests that FTSE100 has an edge over its competitors. The P/E ratio of FTSE 100’s share is around 12 times whereas the dividend yield is around 3.7%.
COVID-19 Declines major player’s shares
The inescapable truth is several Shares have declined tremendously since the world is hit with the pandemic. easyJet is one of the massive fallers this year. The share price of easyJet has declined to more than 50% in the first quarter of 2020. The drop in the demand for fleet has resulted in the decline of sales prospects which has ultimately deteriorated the business.
The company has already begun its stance for improving its deteriorating financial position. As of now, the operating cost of the company has been reduced to 70%. In addition to this, easyJet has also deferred the deliveries of the aircraft which has significantly reduced its capital expenditure.
Additionally, Rolls-Royce is also one of the major fallers in terms of Share. The stock price of the company is down by almost 60% at the beginning of 2020. There is a weak demand for Rolls-Royce products which has resulted in the decline of its share.
Rolls Royce has announced to reduce its expenditure of around £1bn this year. The company has already cut £300 million in the first half of 2020. As the liquidity of the company improves, the preeminent engineering company will have a strong position to sustain and triumph in the existing turbulent period.
As investors, you can consider buying just a slice of the diversified portfolio in shares will provide you with a profitable margin.