The stock market is an attractive proposition for any investor. You may have set aside a specific amount of funds to jump into the stock market. While it may be tempting to think that the main consideration will be on what to invest in, what is really important is to consider how you will go about investing in the stocks you have chosen. It is important to consider factors such as the minimum deposit you are required to make, the commissions involved and whether you will diversify your stock. It is also advisable to take into consideration other factor such as the risk involved and the yields offered.
If you are new to stock markets, you may also consider setting up a demo account such as that of CMC markets, which is usually a dummy account that allows you to master the basics of stock trading before you start investing in real money. While you will not be an expert investor overnight, the experience gained will go a long way in setting you up for a brighter future. With that said, this October should be the month you get serious with your stock market investments. Here are some of the top money makers to watch for in October.
- Starbucks
Starbucks laid down an ambitious 5-year growth plan in late 2016. While it appears that it is falling behind schedule in meeting its targets, players in the stock market are expecting it to bounce back. The coffee giant registered a 6% growth in sales in the first half of this year, which falls short of the projected 10% growth increase. Its management is however upbeat that the company will bounce back and start hitting its target. The expected increase of its store to 37,000 by 2021, from the current 25,000, promises an increase in growth and sales opportunities over the coming years. In addition, Starbucks has been increasing its pay-out by 24.7 annually over the last five years. Together with its pay-out ratio of about 48% and expected growth, there are plenty of reasons to consider investing in Starbuck’s stocks.
- AIG (American Insurance Group)
The change in management for this insurance giant has all the hallmarks of being a game changer. Brian Duperreault is the man tasked with overturning the fortunes of AIG. He is an experienced insurance executive and has worked for ACE limited. At the moment, shares are trading at an 18% discount, and if the fortunes of the company turn by the second half, investors may be rewarded with an almost 25% gain, which is a handsome profit.
- Biotechnology stocks
Stocks in the biotechnology industry have continued to be highly rated this year. This can be attributed to the positive sentiment that the industry has been receiving. Some of the biotechnology companies you need to keep an eye on are Oxis International, Inc. (OXIS), Moleculin Biotech, Inc. (MBRX) and BioLineRx Ltd. (BLRX).
- Healthcare stocks
Stocks in the healthcare sector are usually hot. You should especially watch for pharmaceutical stocks which offer high returns.
While we may provide a long list of stocks to watch, it will be up to you as the investor to be constantly looking at market trends since the market is volatile and stock may fluctuate overnight. However, when investing, your main aim should be to invest in stocks without putting too much risk. Some of the ways to do this are:
- Knowing about the various types of investments. Knowing where you will be putting your money will enhance your confidence and ensure you make the right decisions. If you are new to investing in stocks, you can read books, search the internet or ask for advice. You should aim to clearly understand what is a stock, a bond, mutual fund, ETF and an investment allocation.
- Diversify in low cost exchange traded funds (ETFs). This is a way to keep your costs low and limit your risks. This is because when you invest in many individual positions, you do not run the risk of a one company going bankrupt and losing your investment.
- Be patient with the market. The market can sometimes become volatile and you may go at a loss. However, this should act as an experience for you to make better decisions in the future.
