Investing Report: 32 finance experts weigh in on equities market

Key report findings include:

• NASDAQ tipped to offer the best long term returns of major stock indices.

• More panellists think growth investors (47%) will perform better over an 18 month period compared to value investors (38%). 

• 88% say the coronavirus-induced recession will increase financial inequality

• Investing tips, including why 50% of panellists say retail investors shouldn’t look to buy travel stocks.

• Why panellists are tipping a W (41%) or U-shaped (34%) economic recovery and

• how a global recovery is somewhat dependent on the discovery of a successful COVID-19 vaccine (72%).

Commenting on the report, investment editor at Finder, Kylie Purcell, says retail investors should tread carefully.

“Many of our panellists were quick to warn that the hunt for yield and unprecedented monetary and fiscal stimulus has boosted stock prices,” she says.

“What we don’t know is how long government support will last or how quickly the economy will recover. 

“Investors know that a stock market crash can be one of the best times to buy quality companies at discount prices, but for those planning to buy stocks, it’s important to remember just how volatile the market is. 

“Your safest option is to invest in good quality companies over the long term, rather than buying and selling stocks day-to-day.

“If you are new to investing, make sure you have a plan in place before you start buying stocks. Otherwise it can be easy to make rash decisions when the market becomes volatile.

“It’s important to do your research by checking the news and reading company profit reports. Just because a company has done well in the past, doesn’t mean it’s going to continue to deliver value.

“To avoid taking on too much risk, it’s important to have a diversified portfolio. That means investing in companies from different sectors or countries and even other assets.”

You can view the full report here: https://www.finder.com/za/investing-report