2020 and everything it brought along was – and still is – quite a turbulent ride. As far as the stock market and global economics are concerned, 2020 has been quite volatile. The global pandemic of COVID-19 has taken the world by storm. That left many people confused and concerned with what will happen in the years to come.
The increased volatility and uncertainty COVID-19 brought along prompted some serious questions, especially when it comes to investing. Many people are wondering whether they should invest their assets or not. Especially considering the growing unemployment and job instability in general. However, those who carefully assess the situation and make some well-calculated moves stand to gain quite a bit from this situation. Let’s talk more about it.
Dare to invest when others are not
The first thing you need to realize is that when the stock market experiences a plummet – as it currently is – investment prices go down. So, what this means is that the best time to start investing is when the prices are low. Some would argue that the fact that the prices are lower means that there’s far greater volatility involved. But if you’re looking to make long-term investments and are not after quick profit, this shouldn’t concern you. Instead, you should make use of such an opportunity to access markets you otherwise probably couldn’t even afford. These are particularly favorable times for young investors looking to make their first investments. Of course, the risk will always be there, so make sure you do proper research upfront.
Be smart with your investments
Next, you need to be super smart with your investments. What this means is that you need to research the market and see where the future is headed. Realistically speaking, the future lies in technology. So, you should use this to your advantage when looking for favorable investments. Just because the world stopped functioning normally for a moment, that doesn’t mean it will always be so. And, on the similar lines, do know that there are various types of tech-oriented investment opportunities. So, you really don’t need to focus solely on the IT sector if you’re looking to invest in technology.
Make sure you do proper research
As mentioned earlier, proper research is the key to successful investing. What this means is that, of course, you first need to know what you want to invest in. But simply knowing the type of investment you want to make won’t be enough either. For instance, if you’re looking to invest in a company, doing proper company analysis won’t always be enough. Instead, you should also run a comparable company analysis and see how well the company is doing compared to its peers. This will provide you with a much clearer picture of where your assets are about to go. It can also point out some important red flags you should never ignore. So, if a company seems to be doing well on its own, but seems to be lacking when compared to its peers, it might be a good time to start looking for alternative investments.
Know what you should invest in – and what you should avoid
Again, finding a good investment opportunity doesn’t only include knowing what to invest in. It also involves obtaining detailed knowledge of what to avoid. For instance, farming and piling cryptocurrency seemed to be all the rage not so long ago. But experts now suggest that the hype around cryptocurrencies is starting to degenerate. Instead, what seems to be a far better option when looking to invest in this economy is actually investing in cryptocurrency through stock ownership. This way you won’t have to go through all the hustle of obtaining the currencies. Yet it still offers you plenty of options to reap the benefits of investing in crypto. And, again, since cryptocurrency is an entirely decentralized public ledger, COVID-19 didn’t affect it as much as it did other currencies.
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Make use of all the help you can get
Since we’re living in the age of technology, there’s really no reason you shouldn’t use it to your advantage. Nowadays, there are plenty of programs and applications that can help you immensely with your investing efforts. And considering the fact that social distancing is now more important than ever, it’s all the more reasons you should give them a go. Do some research and find out which are the top-rated investment apps you can use. Find out how you can easily get in contact with a reliable online broker and have them assist you with your efforts.
Take everything with a grain of salt
Finally, no matter how careful and calculated your investment efforts are, you still need to be extra careful. As mentioned earlier, any investment carries a certain risk. What this means is that there’s no foolproof way you can ensure that your investment actually pans out. On top of that, be careful when researching what the “experts” have to say about any type of investment. The sad truth is that you’ll always find an expert that will tell you exactly what you want to hear, even if the reality is completely different. So, that’s why you should take every tip and piece of advice with a grain of salt. Do what you feel is best – but base it on research instead of emotion.
So, the short answer to whether or not you should invest during a COVID-19 pandemic is yes. But like in any other instance, you need to prepare yourself for every possible scenario upfront.