If you are a business-minded person, I am sure that you are constantly thinking of ways to grow your investment during the pandemic. How are you going to do it? What considerations should you make before you decide to invest in something during the Coronavirus crisis? Those questions are pretty tough to answer. I suggest you spend a few nights doing some research to arrive at the best decision. We are heading into the unknown economically, so move with caution. At FXWatchdog we want to help you get starting, we’ve researched the best investment strategies for you today.
We all know that the ongoing pandemic is threatening the global economy. It is a desperate time for the business industry due to temporary closures, layoffs and plummeting stock prices. On the flip side, some business strategists may see the situation as an opportunity to grow wealth. Investment opportunities are out there waiting to be discovered. Strike while the iron is hot! Here are investment strategies that are worth considering during the Coronavirus pandemic:
Bonds & Stocks
There are various advantages to investing in stocks during the wake of the COVID-19 pandemic such as:
- The stock value is likely to skyrocket in the future.
- It provides a steady income.
- It is easy to sell.
- It enables you to invest across companies and countries as well.
It is hard to predict how the market will behave during the COVID-19 pandemic. It is also not surprising how stock values are declining due to the crisis. One thing we can learn from history is that eventually the stock markets always rebound. Investors tend to panic and some are selling their stock shares before hitting rock bottom.
Watch out for investors who are selling their stocks at bargain level prices. It can be an advantage to your end as you can acquire bargain stocks which are likely to raise its value in the future. Let me warn you that offers could be overwhelming at first glance for someone new in the stock buying investment market. It is always advisable to get professional advice.
Tip: Do not make a reckless move. Look at other stock investment options before deciding.
Shopify and Facebook are classic examples of good long-term stock investments in the face of COVID-19. They are also listed as some of the best investments for 2020.
Moreover, if you want an investment that is safer and guaranteed, you should consider putting your money into buying bonds. There are various types of bonds that you can invest on such as commercial bonds, saving bonds, treasury bonds and municipal bonds. Let’s look at the advantages of investing in bonds:
- Bondholders can ensure legal protection under the laws of most countries.
- It has fixed interest rates.
- Bonds are known to be safe investments.
People are attracted to invest in bonds because it yields higher interest compared to short-term interest-bearing securities. The Fed cut the interest rate down to 0% to keep the economy running which means that prices will go up due to the increasing demand.
However, if you do not have plans to sell your bonds, you can relax. The yield you got when you bought the bond is locked, which means that the value will not be affected despite the market situation. Based on experience, the bond market is a bit hard to interpret for a new investor. The terms that they use to describe the market is somewhat confusing.
Day trading is an interesting opportunity for those staying at home and still wants to earn cash during the pandemic. You should also note that day trading means going after companies with immense resources, which means that there are considerable risks involved.
Let me warn you… it requires lots of studies to become successful and the results could be disastrous if you downplay how complicated it can be to master. It is best to consult an expert to help you understand how bonds and stocks will work during the Coronavirus crisis.
Bitcoin, another Exciting Investment Option in 2020
Another less mainstream investment strategy during these uncertain times is to invest in cryptocurrencies.
Most people think of Bitcoin when they consider cryptocurrencies, so we will concentrate on that in this article. However, Ethereum, Litecoin, Ripple, and other more recent cryptocurrencies represent excellent investment opportunities as well and are worth further study.
Many people are intrigued by Bitcoin and wonder, “Is this my way to make a million?” Well, the answer is – possibly!
Since its inception in 2010, Bitcoin has far outperformed even the elite FAANG shares (Facebook, Amazon, Apple, Netflix and Google). It has been able to overcome hard times and has always managed to recover after setbacks. It is due to Bitcoin being reliant purely on demand, rather than market forces.
In 2017 Bitcoin increased in value by 1,000s of percentage points in a year, far outperforming even the best stocks and shares.
2020 started in an equally promising way for Bitcoin with it increasing in value by 29% in January alone.
The COVID-19 pandemic has changed things, and the value of Bitcoin suffered in a similar way to the world’s stocks and shares. Recent weeks have seen a recovery in value and Bitcoin appears to be on the brink of a significant rise in value.
There are several reasons for this with one being a proposal before Congress for the USA to adopt a “Digital Dollar” which would use similar blockchain technology to Bitcoin. It will go a long way to legitimising Bitcoin and taking away the doubts that many have about its reliability.
The Chinese government also seems poised to start using a “Digital Yuan” which demonstrates that digital currency is the future. If this is so, the long- term prospects for the value of Bitcoin is positive.
Many people adopt a cautious approach to Crypto, but they may be wrong to do so. If you invested $1 at the start of 2010, the value of your Bitcoin would have been $90,000 at the decade’s end. It is impossible to find a better return on investment anywhere.
Bitcoin has created many millionaires, and the highs and lows have been an incredible ride to experience. But over the past ten years, Bitcoin has outperformed all stock markets, gold investments, currency deals or government bonds.
The safe and smart approach might be to follow the conventional wisdom of buying a selection of bonds and stocks. However, you should consider leaving some “mad money” to invest in Bitcoin. Set aside however much you can afford to risk and see where the next decade takes us. The uncertainty created by the Coronavirus is likely to be a good thing for the value of Bitcoin, and now might be the last opportunity it is possible to become a millionaire from Bitcoin.
Conclusion best investment strategies
The World Trade Organisation (WTO) reckons the COVID-19 effects on trading will last until 2021, as I mentioned earlier the future is still uncertain.
One thing is for sure… stock prices will increase and decrease in value, and there will be opportunities to get a good bargain! It is also to be expected that there will be more people and businesses that will suffer from the economic impact of the outbreak. The business industry will suffer a loss due to halted operations and a slowing supply chain, which will also leave more people unemployed.
On the other hand, more investors will start trading because of the dire need to sell their shares before the value goes down to zero.
Another interesting business strategy for 2020 is day trading. No one knows when the Coronavirus crisis is going to end. The confirmed cases and death continue to rise overnight. No one knows what will happen next. The bigger question is… What will you do with your money? Are you willing to gamble during the pandemic crisis? Invest, but be careful! Gamble, but always look for a safe way out.
Long-term investments such as stocks, bonds and Bitcoin are a few of the best investments that are worth considering during the pandemic. It is the safest way to grow your wealth without experiencing a significant loss.
Moreover, it is essential to understand the ins and outs of investments. It is proven that the right investment idea can lead to growth and more opportunities. I believe some of the investment ideas in the market are hard to comprehend, which is the reason why you should have an expert guiding you.
Investing is not speculating. You need to study the market carefully to position your investment tactic on the right angle.
Getting help from a financial expert is a wise thing to do! They can help you achieve the right investment strategy that will enable you to grow your wealth quickly. Financial experts can provide you with the most accurate market interpretations, which will help you make informed choices.
The important lesson that we can all learn from this pandemic is to always to be careful with the decisions that we are making to avoid loss. Planning your investment strategy carefully is the key to achieving success and wealth. The pandemic is possibly the worst the world has ever faced; however, this crisis will pass if we all unite. Stay safe and take care of your wealth!