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Why lockdown completely?

You can still put your spare money on the stock market

Written by Ronald Veerman | 5 minutes
FRI 29-05-2020

Do you have money left over due to the lockdown? The coronavirus and lockdown measures are financially hard for many people. But at the same time, there is also a group that spends less money now that holidays, outings and other activities are being cancelled. And this holiday money remains unspent.

Paint the house, pay off a piece of your mortgage or just put the money aside. There are many options. But why not also invest part in the stock market? This is money you would spend anyway but it gives you a chance of return.

You don't have to keep a two metre distance on the financial markets and all companies remain “open".

Below are ten sectors where you can convert unused expenses into a comparable investment on the stock exchange.

It goes without saying - especially now - that you need to thoroughly delve into each individual company. After all, a large group are struggling because of the crisis and have fallen considerably. But this can also offer the possibility of a recovery.

1. Cinema
Cinemas may open their doors again, but with a maximum of 30 people you may still opt for a movie at home. Instead, investing in cinema can be done through the Belgian Kinepolis, Disney and Time Warner.

2. Cafes and Pubs
Going to cafes and pubs will be difficult for a while as we attempt to keep a two metre distance.  Still wanting to spend money on beer? This can be done via the stock exchange on many brands including Heineken or AB Inbev (including Jupiler and Hertog Jan).

3. Festivals
We may have to wait until next year before tens of thousands of people will be allowed together on a meadow again. The American LiveNation is the big name behind festivals such as Pinkpop and Lowlands, which hope to be able to throw a party again in 2021.

4. Formula 1
We will have to wait at least a month before the Grand Prix returns. However, investors who love the sport can also invest in its fast cars such as Ferrari or in Continental tyres.

5. Theme parks
Sitting on your own in a roller coaster is a lot less fun than enjoying the thrill with everyone else. So perhaps visits to the amusement park will be delayed for a year. Maybe there will be some new and exciting attractions in the listed Six Flags, Seaworld and Disney parks on your return.

6. Restaurants
Eating out or just sitting in a cafeteria will be at a two metre distance for a while, but you may already want to invest in a meal or a cup of coffee. This can be done on the stock market through McDonalds, Just Eat Takeaway or Starbucks, the coffee market leader.

7. Football
The Bundesliga has started again in Germany, but without the fans. It is still uncertain when you will be able to return to the stadium yourself. But of course you can still invest in many of the top European teams such as Ajax, Juventus or Manchester United.

8. Flights
The aviation sector had to make an emergency landing and will continue to suffer for a while. You can accept a voucher for a cancelled flight or invest the the money you would have spent. This sector has many listed companies on the stock market, from Air France and KLM, to the builders Airbus and Boeing.

9. Holidays
Relaxing in a hotel or holiday home will probably have to be done in your own country this year. But you can also postpone your holiday it until next year and invest the money you would have paid for your stay in travel giants such as Booking Holdings (including Booking.com), TUI or Pierre & Vacances (including Centerparcs).

10. Clothing
The shopping streets are getting a bit busier, but you might have already done this online before the corona crisis. However, clothing is also available in all shapes and sizes on the stock market, from H&M to Inditex (including Zara) or the German online giant Zalando.

 

Ten ways to give your saved holiday money or lockdown advantage a suitable destination.

But of course don't just invest.  Take a good look at how the companies are doing. Is the price low now? Is there a chance of extra return? Or are they going to have a hard time for a while? Because it also applies here: investing comes with risks. Your investment can rise or fall and you could get back less than you invested.

Author

Ronald Veerman

Ronald Veerman is a financial expert at BinckBank. Before that he worked as a financial journalist in Den Haag, Brussel and Amsterdam and as chief editor of the main financial newspaper De Financiële Telegraaf (DFT).

 

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