The year 2020 has not been an easy one. The COVID-19 pandemic will perhaps go down in history as one of the biggest economic crises in the world. With half of the workforce at risk of losing their jobs due to the virus and so many small businesses closing down, it’s a little challenging to find a silver lining to it all.
You’d be surprised to know that stocks are still, in fact, rising. Despite the negative impact of the virus that the world had to face, the market’s treading an upward slope, mostly in tech industries such as Apple and Amazon.
That sounds like good news, doesn’t it? Before you get too excited and dive right into investing, though, it’s important to take a step back and consider that waiting out the storm is a more promising move. Since there is still no definite date as to when things will be going back to normal, you may want to rethink and make investments a post-pandemic affair.
Easing back into investments
The recession is over, and it’s finally deemed safe to make your investments. Businesses are once again open for regular operations, and there are just so many options in the stock market. Where do you start, exactly? Here are four things to think about before you take that first step in investing again.
1. Choose where to invest wisely
Living and breathing in the age of a pandemic should be enough of a reminder to make you rethink which industries are key investment opportunities. Ones that have shown significant importance in the midst of the current global crisis are healthcare, pharmaceuticals, technology, digital advertising, and cloud-based companies.
It’s no surprise that these industries have taken the stage in light of recent events. Healthcare and pharmaceuticals make the obvious case for health and wellness. Tech, digital advertising, and cloud-based companies, on the other hand, are in it precisely because of how flexible they are in a time when social distancing is vital and communication is a challenge.
2. Always think long-term
You can’t predict the future. You don’t know what will happen next few days, weeks, months, or years. Everything can be a risk when you think about it. Another wave of the pandemic could hit, and you might not be prepared for it.
A good move in case another unexpected wave comes is investing in cyclical and stocks with mid-caps. There are three critical sectors identified that can continue to grow post-pandemic: food, health-tech, and automation, all of which are reflective of the current rising stocks.
As the world progresses past COVID, it’s easy to see why these sectors are the ones to watch out for—nutrition, safety, and convenience, things we need to survive.
3. Diversify your holdings
It’s just like the saying: don’t put all your eggs in one basket. While this tip shouldn’t be a new idea, it’s an important one, especially now that the world has seen how radical changes could occur overnight and span months. When you diversify your holdings, you avoid putting concentrated risk in your portfolio and keep your other assets safe.
4. Keep building your savings
Another crucial learning of this year is to make sure you have enough savings to survive. It’s not easy with the business climate at this time, and it’s tough to say for sure how things will pan out in the future. What’s important, though, is that you’re able to build your savings even as things go back to a certain level of normal.
What can you do to continue building it? Look into profitable business ideas you can adapt in this remote work setup. There are many ways to earn extra income; it’s just a matter of finding the right platform that works for you.
For example, digital marketing is a considerably flexible work with various fields that you can grow your expertise online. You can choose to expand your experience in things like social media management, content writing, graphic design, or even web UI design. All of these options are work that you can do, even while prioritizing you and everyone else’s safety.
Invest in a Way that Works for You
If there’s anything to learn from COVID, it’s that the ability to adapt is invaluable. There’s no telling what the future has in store, and while things may seem stable post-pandemic, that doesn’t guarantee something else won’t happen in the future. Waiting out the storm before investing with these four tips in mind can help.
If you’re dead set to invest with adaptability and flexibility in mind, make sure to build a good stock trading system that works solely for you, as other people’s experience in investing may be completely different to what you want and need. Setting up everything, from goals to risk management, will help you on the off chance any unforeseen circumstances pop up again.
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