How To Invest During The Coronavirus Pandemic

    The world is experiencing a global pandemic like never seen before in modern times. Almost all countries are in a lockdown and businesses are closing and some are starting to collapse. Many people have lost their jobs some have been furloughed. According to reports, about 26million people have filed for unemployment benefits. Indeed, these are trying moments for everyone.

    So, it is expected that when times are tough and money is tight, one of the first things you may neglect is investing. That’s also true when there is uncertainty in the stock market or when real estate seems to be in a standstill like it is right now. People get frightened, and they are unwilling to take any risk. That is absolutely okay, but you don’t have to stop investing, though. You just have to be more cautious.

    Investing is a great way to build up a nest egg for the future. If you take the time to put money into investments that are safe, you won’t have to be as concerned about losing your cash. 

    When the pandemic is over and the economic climate improves, the stock market and real estate market are investment vehicles that can help you make money short term, medium term or long term, depending on your appetite. But sometimes that might not be the case when all that you want is the safety of your money!

    In a global pandemic situation banks can oftentimes be of help. You may not think of savings accounts as much of an investment because of their low interest rates. But when you want to protect your money, it is better to put it into something that offers a lower return and virtually no risk, as opposed to something that’s high risk. A savings account won’t make you rich, but you’ll earn a steady return and won’t need to worry.

    While you’re at the bank, ask about CDs and IRAs. These are two ways to save for retirement and get a modest return while keeping your money protected. A CD, or Certificate of Deposit, typically pays a higher interest rate than a savings account. You have to leave the money alone for a while, but many CDs are short-term investments.

    Another way to invest in a pandemic for someone thinking long term is to look at the stock market. At this point in time because of the uncertainty many businesses stock prices are dropping. This presents a good opportunity to buy really great stock. Consider speaking with your financial adviser to better understand the stock market trend.

    Other ways to invest during a pandemic might be to start a business or invest in other people’s business. These can be risky, but if you know and trust the person in whose business you are investing, you can make big profit down the road. It is not quite the same as investing in CDs, IRAs or even stocks or real estate, but you’re investing in the future of someone who needs your help -and making money in the process.

    Giving up is not the answer. The most important thing to remember is that the economy will improve. The global pandemic will be over and while you might not be making the return on your investment that you had hoped for at the moment, that can (and most likely will) change in the future.

    Always keep thinking positive and looking into new investment options. Talk to your banker or financial adviser about saving money and earning a good return on it.

    Listen to the suggestions you are given and choose the best for you. Remember, investing isn’t just about making a quick buck. It’s about a long-term strategy. You may need it one day. If not, you can use it to travel, help family members who need it, or make a donation to a charity that matters to you.

    As long as you invest carefully and don’t lock yourself into something long-term that might not be right for you, you’ll come out ahead in the end. Be prepared to lose a bit from time to time. That happens to even the best investors. By proceeding with caution and cutting losses when necessary, you should be able to continue to invest even in hard financial times.

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