FTSE 100 crash: here’s how I’d invest right now to retire rich

first_img Our 6 ‘Best Buys Now’ Shares Anna Sokolidou | Tuesday, 21st April, 2020 | More on: GSK See all posts by Anna Sokolidou The Motley Fool UK owns shares of and has recommended GlaxoSmithKline. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Image source: Getty Images 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. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! Simply click below to discover how you can take advantage of this.center_img Enter Your Email Address The FTSE 100 market crash has been dramatic. But the index is recovering fast right now. So, I’ve been asking myself some questions such as are these gains sustainable? Where should I invest right now? And should I buy anything at all or should I wait? Here are my answers.What’s happening right now?First of all, I totally agree with my colleague Manika Premsingh that the FTSE 100 might not have found its bottom just yet. Market crashes do not normally end in less than two months. Even though the current situation is temporary and good companies will survive, we do not know how long ‘temporary’ will be and all the news flow looks rather scary. That is especially so as there are risks that there could be several Covid-19 infection waves. 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…Charlie Munger, Berkshire Hathaway‘s vice-president, is currently not making any purchases, holding large piles of cash instead. Yet it does not mean that he will not buy very soon. He is waiting for the right opportunity. I would suggest smaller investors should also have some spare liquidity and not dive in just because a share is cheap.  Yet buying good companies now could yield rich rewards. Before we buy anything, we should calm down and think where the company would be in five or 10 years, of course. The fittest businesses will survive and prosper and if you can identify these companies at this stage, you could end up retiring rich. FTSE 100 opportunitiesSo, which companies would I invest in now? Defensive shares specialising in food, drinks, pharmaceuticals and other essentials would be appropriate for risk-averse investors. I would also go for companies with a sound dividend history like pharmaceuticals giant Glaxosmithkline (LSE:GSK). You can still buy the company at a discount compared to where the shares were in January and February. The dividend yield of about 5% is lower than some. But it seems to be more sustainable than that of, say, many oil companies and financials, although GSK’s dividend cover ratio of just 1.16 is less desirable.The price-to-earnings (PE) ratio of less than 18 may not seem to be a bargain compared to that of riskier sectors. However, the company has been increasing its sales revenue and profits for several years, which is a very good sign.And there is a strong topical edge too. Glaxosmithkline and French giant Sanofi have started working to develop a coronavirus vaccine. It is not alone in this as many other large pharmaceutical companies are currently working to develop one. But GSK also produces other coronavirus-relevant products, including pain killers, vitamins, dietary supplements, and test kits.Where else to invest?Apart from specific companies, I would also suggest investing in the FTSE 100 index itself. That provides diversification, thus reducing the risks. It is highly unlikely that all of the companies of the index would go bankrupt and you would get a chunky dividend yield of more than 4%.And what about looking outside of the stock market? It is often said that a classical investor portfolio should consist of 50% shares and 50% bonds. Yet after the Bank of England’s rate cut, some companies’ real bond yields are negative. And some more generous ones from less ‘sound’ companies are speculative and do not quite compensate the risk the investor is taking. I think I will stick with the FTSE 100! FTSE 100 crash: here’s how I’d invest right now to retire rich I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner.But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. “This Stock Could Be Like Buying Amazon in 1997”last_img read more

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