International Blue-Chip Stock: The New Market Segment in Bulgaria

Finance | August 19, 2021, Thursday // 09:34|  views

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The financial markets started 2021 with cautious optimism. With the year heading for its home stretch, that sentiment has been justified. Stock markets have bounced back from the ravages of Covid-19 while national economies continue to catch up. In the US and Germany, stock market indices have broken all-time highs recently.

The world is gradually learning how to manage the pandemic. Countries are at different stages of vaccine rollouts to ensure that the effects of the virus are mitigated. Notably, some have even deployed anti-Covid vaccine robots to help frontline workers in disinfection. Such is the concerted effort and dedication that it takes to ward off this once-in-a-lifetime crisis.

Therefore, interest in stock market investments will continue to grow. The performance of major economies will naturally make most headlines. Learning how to invest in stocks of such prominence can be beneficial. This move can expand your scope of investments and make the market reach vast.

What Are Blue-Chip Stocks?

The phrase blue-chip first came around in the 1920s. Oliver Gingold, an employee at the Dow Jones industrial index in the U.S., observed that specific stocks traded at over 0. This categorization took hold over time.

Therefore, blue-chip stocks are those that are generally reliable to perform consistently near the top. They usually belong to large, well-established companies with a solid presence. Some of these companies are multinational corporations with recognizable brands. They usually have dependable earnings, with stock owners expecting decent returns for the long term.

The key to attaining this status is consistent performance on a massive scale. Most of these corporations have attained hundreds of billions or even trillions in market capitalization. They are market leaders and are some of the most lucrative brands worldwide. For example, a company like Coca-Cola does not need an introduction.. It has decades of excellent performance and has a brand that even remote corners of the world can identify. Such reliable stocks are popular with investors who hold them as relatively secure bets on stocks.

The following are some advantages of investing in blue-chip stocks:

  • The stocks offer high returns on a regular basis- These companies often deal in products and services with broad market appeal.

  • Blue-chip stocks enable portfolio diversification- The more reliable stocks can provide some safety for your riskier investments.

  • They can provide a cushion against inflation and recessions.

  • The stable dividends allow investors to build their equity.

International Blue-Chip Stocks in Bulgaria

The beauty of blue-chip stocks is that they have a global appeal. Investors in different countries can gain exposure to these stocks and benefit from positive trends.

Luckily, Bulgaria is one of those countries from which investors can access international blue-chip stocks. A recent move by the Bulgarian Stock exchange to add Deutsche Börse’s modern trading technology and global client network has made it efficient for investors in Bulgaria.

The successful implementation of this platform will contribute to investor diversification in Bulgaria. This technology allows customers to broaden their network of stocks.

Trading is safe, efficient, and stable. Such is the power of technology in making the world a global village.

Bulgarians can now trade around 100 selected international blue-chip stocks. They are all available via the Bulgarian Stock Exchange. Blue-chip stocks are attractive and offer more dynamism to Bulgarian capital markets.

Deutsche Börse provides this trading architecture to several other European exchanges and has a solid reputation.

The possibility of having a seat on the high table has its high allure. International blue-chip stocks offer a level of exposure and potential appreciation that national markets may not. Additionally, these stocks can be a buffer for riskier investments.

During the Coronavirus Pandemic peak effect on the stock markets, several blue-chip tech companies continued to perform well.

Conclusion

Blue-chip stocks don’t attain their reputation overnight.

They are companies with a reliable track record of high-level performance.

Accordingly, these stocks have achieved a level of popularity for this reason.

Bulgarians have a unique opportunity to participate in international markets and take their trading activity to a new level.

This development is a testament to the power of global interconnectivity. It will be fascinating to track international blue-chip stocks uptake in Bulgaria.

 

 

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