Want to invest in the stock market? Learn some tips tailored to your profile

Creating a portfolio of investments in the stock market is an activity that requires a solid knowledge of how the market works and will require a lot of patience and willingness to take risks. Mitch Goldberg, president of the investment house ClientFirst Strategy, gives you some tips, depending on your age group.

Traders on the stock market

Investing in the stock market is an activity that requires dedication and a sound knowledge of the laws that guide the functioning of the market. To build a portfolio of assets, you must keep in mind that it is almost impossible to enrich from one day to the next. This is an activity that will require a good amount of patience and dedication.

Mitch Goldberg, president of the US investment firm ClientFirst Strategy, believes that it is not enough to simply subject shares to market fluctuations; you need to look at the big picture and discover business opportunities. That means taking risks.

After last year, was a year of strong stock market gains, 2018 arrived with a new wave of optimism, which broke out with the February 'mini crash'. Industrial Dow Jones, which serves as a benchmark for stock markets worldwide, has retreated more than 1,000 points and triggered the VIX volatility indicator known as the "fear index".

Although the market has since adjusted for strong losses, a recent study shows investors are less likely to take risks. "Selling in May and going away - a dubious investment strategy - seems to have come earlier this year", says Mitch Goldberg. However, the president of ClientFirst Strategy believes that investors should not adopt a conformist stance and refrain from taking risks.

In an opinion piece published on CNBC, Mitch Goldberg gives the example of Warren Buffett. Known as the most successful investor of the twentieth century, it recently bought more than 75 million shares of Apple technology giant, in hopes of selling them at a higher price in the future. The company's stock has been appreciating well and the company is close to reaching the unpublished mark of 1 billion dollars (840 billion euros) in market value.

"Just because you can not find a reason to buy stocks does not mean you do not need a strategic plan. My experience tells me that markets do not run in autopilot mode for long", he says. As such, Mitch Goldberg leaves some investment suggestions, taking into account the different profiles of the investors.

Millennials (born after 1980):

Mitch Goldberg's suggestion for the youngsters is that they continue to invest. "Continue to buy and wait for stocks to be attacked. A down market is a good friend. Many baby boomers (people born between 1946 and 1964 in Europe) accumulated wealth in the stock market because they bought stocks while stocks were down", he explains.

Generation X (born between the 60s and 80s):

Given the improvements in living conditions and the increase in the number of years of life, Mitch Goldberg recommends a type of investment that takes into account the possibility of working more and more years than their parents. "Keep investing and realize that in 20 years we will have gone through several cycles of bull market and bear market. Therefore, your income should serve a part of your assets, usually between 20% and 30% maximum", he says. A down market is also a good ally for your investment.

Baby Boomers (born between the 40's and 60's):

This is a generation that enjoys a longer lifespan than its predecessors and many of the people in this segment will work harder and live longer in retirement. For this age group, the President of ClientFirst Strategy recommends: "One strategy for this generation is to divide investments into different categories of conservative, moderate and growth risk. In this way, you will have a conservative portfolio to raise funds, while giving you the time to grow your growth investment".

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