The Motley Fool

Why This Bear Market Is An Amazing Opportunity For Millennial Investors

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

Volatile markets sending financial pundits into panic mode, banks telling clients to sell everything, the FTSE covered in red ink day after day. It may seem counterintuitive, but for investors, and especially millennials like myself, this scenario is an amazing opportunity to begin putting cash into the stock market.

Millennials today have one advantage that can’t be replicated by even the smartest hedge fund manager or algorithmic trading model: the power of time and compounding interest. Albert Einstein rightly described compounding interest as “the eighth wonder of the world”. Buying shares now and giving them 40 years to grow in value is the surest way to ensure a healthy nest egg when the time comes to retire.

5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!

According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…

And if you click here we’ll show you something that could be key to unlocking 5G’s full potential...

Start now

And the time to begin socking away savings is now. Don’t put off investing by saying you’ll get around to it when you’re earning more later in your career. Thanks to the miracle of compounding, at age 65 each pound you put away at age 20 would have historically doubled in value compared to a pound saved at age 30. The Motley Fool’s own Morgan Housel explains the numbers behind this in a great article.

But how to begin? The FTSE 100 is down 15% over the past year, unfairly dragging down with it shares of otherwise great companies. All investors, but particularly those of us with years ahead of us before retirement, would be well served by beginning to sift through the wreckage for bargain purchases. However, if you’re just starting out and don’t want to dive right in to buying individual shares there’s an excellent alternative. Buying a low-cost FTSE tracking index fund allows you to own the entire the market while you learn more about shares and investing.

If you’re ready to look for bargains, great blue chips such as Royal Dutch Shell, GlaxoSmithKline, and HSBC can be bought at valuations cheaper than the FTSE 100 at large. With diversified revenue streams, global reach and 5%-plus yields, these could form the backbone of a great portfolio to hold for decades. Although they’re not the most exotic of shares, reliability and simple business plans are exactly what legendary investors such as Warren Buffett and Peter Lynch look for in their investments.

Golden opportunity

The benefit of not needing to draw on our investments for several decades means that not only do our portfolios have time to recover from dramatic drawdowns, but that we should view times like these as a great opportunity to buy more shares at low prices. Whether it’s individual shares or index funds, the most important action to take now is to start saving whatever you can and letting your money work for you, rather than the other way round.

5 Stocks For Trying To Build Wealth After 50

Markets around the world are reeling from the coronavirus pandemic…

And with so many great companies trading at what look to be ‘discount-bin’ prices, now could be the time for savvy investors to snap up some potential bargains.

But whether you’re a newbie investor or a seasoned pro, deciding which stocks to add to your shopping list can be daunting prospect during such unprecedented times.

Fortunately, The Motley Fool is here to help: our UK Chief Investment Officer and his analyst team have short-listed five companies that they believe STILL boast significant long-term growth prospects despite the global lock-down…

You see, here at The Motley Fool we don’t believe “over-trading” is the right path to financial freedom in retirement; instead, we advocate buying and holding (for AT LEAST three to five years) 15 or more quality companies, with shareholder-focused management teams at the helm.

That’s why we’re sharing the names of all five of these companies in a special investing report that you can download today for FREE. If you’re 50 or over, we believe these stocks could be a great fit for any well-diversified portfolio, and that you can consider building a position in all five right away.

Click here to claim your free copy of this special investing report now!

Ian Pierce has no position in any shares mentioned. The Motley Fool UK has recommended GlaxoSmithKline and HSBC Holdings. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.

Our 6 'Best Buys Now' Shares

Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.

So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we're offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our 'no quibbles' 30-day subscription fee refund guarantee.

Simply click below to discover how you can take advantage of this.