Within a few weeks of Covid-19, or Coronavirus, taking a grip on the globe, stock markets reacted in less than favourable ways. Billions of Pounds and US Dollars, the planet’s strongest currencies, were wiped in a matter of days and companies began to feel an unexpected pinch.
But while the world reacts in a panic, it is not all doom and gloom for those of us on lockdown or in self-isolation. As the falling prices are likely to fall even further before they regain their strength, the fact is that they will get better, and when they do, you will want to take full advantage of the revival.
COVID-19 is officially a global pandemic. No industry is safe from the financial impact that this virus will have, and will continue to have, but the stock markets in particular are feeling a certain stress that they have not felt in decades.
It is fair to say that now is not the time to be making big investment decisions. For many of the biggest countries, this is only the start of the pandemic, so we are almost certain to see more upsets in the coming weeks.
On the bright side, the stock markets have a reputation for looking towards the future rather than being stuck in the past, so right now, you could be setting the foundation for making money when the skies clear and life goes back to business as usual. Learn more about CFD Trading in South Africa.
Those who are long term investors have history on their side with this current fallout. Markets typically bounce back.
On a side note, when you are thinking about your investments during this outbreak, you don’t want to panic sell your existing shares. Right now, your money is on the market, and the only way that you can make a loss or make a profit is if you sell it.
Selling now you will lose money. Leaving it where it is, you will make money when the markets reboot.
Become a Coronapreneur
With the fear in the air, if you have cash to spare, this is the time to buy. The markets have already showed just how panicked investors are, and you could buy shares that are cheap now but within 6 months it could be worth a handsome profit.
The way to make money in the investment world right now would be to look for those companies that are losing shares and then have an in depth look at their past performance and their previous dividends.
Some will tell you to invest in those companies that are right now looking profitable, like the medical industry, and that is fine if you are looking for short term gain, but we all know that it is the long term pay off that you should be really focusing on.
With the age of the internet, a generation which has never truly faced a crisis of this magnitude before is suddenly cut off from their usual purchases and a whole new variety of necessities are now becoming apparent.
Another sector to look at is ecommerce. Online shopping is booming as people use social distancing to protect themselves from COVID-19. Instead, they are doing their shopping online and waiting for delivery. So it would make sense to now invest in online companies.
Now is also the time that you can actually expect to be able to buy more stocks with the little money you have to invest. Read more about the best forex broker platforms for beginners.
This period is in many ways a great time for the smart investor who can keep their heads about them in a time of crisis. And if you find that you are one of the unlucky few who are quarantined, think of this as the perfect time to read up about the various companies that you can invest in.
The Industries to Focus on
During this downtime, which no one really knows how long will last, there will be at least 3 industries that will benefit.
The Telecomms and Digital Industry
Millions of people staying at home for weeks on end. You can be sure that plenty of shopping will be done during this time. Web based companies and those working in telecommunications are among the ideal companies to invest in now.
And since these are industries that are always on the up, investing here can be seen as a good long term option.
Again, since people are staying indoors, entertainment such as streaming services are going to become a very popular way to pass the time. It’s a good idea to look for shares in these types of companies.
Now is the best time to improve education and take an online course. There are a few companies out there, some possibly listed on the exchange that you can invest in and enjoy the long term benefits.