Take These Tips to Grow Your Money During Coronavirus Quarantine
Coronavirus has been officially named a pandemic and the world has fallen into a generalized quarantine. The bull run of 2019 and early 2020 is officially over. Now no one knows what will come next.
These extremely uncertain times lend themselves to irrational decisions for many aspects of our life.
But before giving into despair or desperation and put yourself in unnecessary financial risk…
Let’s Make Sure What’s the Right Move
Begin investing in small steps and be sure to move your portfolio towards diversification across all major asset classes (currencies, private equities, stocks, bonds, and commodities) and different industry sectors.
Nevertheless, when looking for profitable avenues for uncertain times the best approach and one you’d do well to remember is:
• Scale your investment gradually
• Expand your portfolio diversification
• Increase risk aversion
• And read our tips to keep you afloat during this quarantine
Long-term investment is where is at!
During these difficult times -and for the first of our tips- having a significant amount of savings set aside is paramount to start planning your long-term investment strategy. An amount equal to a trimester or semester of your earnings saved for a rainy day will ease your investment anxiety.
Remember that all avenues you choose to invest in during these recession times should be aimed towards a 3 to 5 years’ investment cycles. Also, make sure that market volatility is always factored into your long-term financial plan.
This extended investment time allows a market’s tendency to expand and at the same time dampens momentary volatility.
Actually, this investment technique is very commonly applied to dollar-cost averaging since you basically buy shares on a consistent basis over a long period of time.
We know having a long-term focus when a global crisis is just unfurling can be a tough tip to follow, but against common advice, is actually during these times that you’d want to stick with your financial plan.
No one knows when the market will bottom-out, so meanwhile, hedge against recession by allocation a portion of your savings, executing an effective and well thought out plan
Scale your investments gradually
Allocating a fixed amount regularly into the same avenue over a long-term period -or what is called dollar cost averaging- will allow you acquire more shares at low cost than when the price was peaking.
Currently you can find retail stocks that re on the rise and can become a good target for dollar cost averaging due to the massive purchases of supplies in response to Coronavirus.
Alternatively, some alternate energy stocks have spiked due to the oil price war indicating that just because some stocks are low right now, doesn’t mean other equities or particular stocks won’t be on the rise.
The way to face this volatility brought upon by Coronavirus is by taking advantage of low-priced stocks with potential and shares that are markedly on the rise but haven’t yet peaked.
How can you do this effectively and minimizing risk? Keep reading our tips
Patience is key
Review your portfolio’s investment horizon continuously and adjust your investment aggressiveness to correspond you’re the amount of time you have before retirement.
This will allow you to spot stock dips and take the current opportunities to buy at a discount, the key is to be patient with your investment strategy.
No one knows how deep the market will bottom out due to coronavirus, some estimate that the dip will reach 50% or more. So, adjust your strategy to meet your goals, investment horizon an asset mix to deal with the situation and be flexible enough to reevaluate and tweak what needs to be. But also remember that the market will always move up in the long term, so be patient.
Diversify, diversify, diversify
Many investors often consider low-cost, passively-managed index funds or exchange traded funds (as part of their asset mix since they’re supposed to give you exposure to a broad range of stocks.
But you should also take the time to check your asset allocation on your own. Don’t just set it and forget it. An 80% allocated to stocks and private equity and 20% into bonds is the perfect mix for a long-term portfolio.
In spite of your current asset mix, always be on the lookout for dipping markets and invest at a discount on attractive shares.
Also, these market breaks and correction present a good chance for investors to play the long timeline and perform even better during their break-even periods since they acquired shares at significantly lower prices.
But is asset diversification enough to thrive during this Coronavirus pandemic?
Global Diversification and Increased Risk Aversion
Reviewing your portfolio’s asset mix to:
• Ensure they’re effectively positioned to benefit from growth opportunities around the globe
• Take advantage of current and emergent market trends
• Avoid relying solely on the strength of a single country’s commodity markets
Will have to become the norm if you mean to overcome this Coronavirus-fueled recession.
Moving asset allocation beyond domestic stocks, securities and fiat currencies and into global diversification, equities, fixed income and non-traditional investments will be the investment strategies that will grant endurance over this quarantine.
• Cash-flow needs’ analysis
• Risk aversion goals
• And investment time horizon
Will focus your allocations periodical re-evaluation to overcome changes in a market or surmount any given asset’s circumstances.
The Best Tip to Make Your Money Grow During This Quarantine?
The indisputable truth that 2020 and Coronavirus will leave to the investing world is that now is the time to embrace disruptive assets in emergent markets. Companies with a great ROI projection that has scalable business models for a large enough target market, will be the type of assets that will carry many portfolio’s afloat while Coronavirus is being surmounted.
The ones on a technology-related sector or that show disruptive business models, since these have a bigger chance to grow and provide investors with the type of returns that they are looking for.
And the ones that are positioned on a market that’s on the rise grants you more growth potential, which ultimately leads you to exponentially higher returns, portfolio diversification and protection against correlation.
This type of avenues has always performed well against recessions and during this Coronavirus quarantine won’t be different.
The Best Investment Opportunity to Thrive During Coronavirus Quarantine
Right now, it looks like FinTech companies are on the rise for the sheer fact that the new developing tools they’re creating for investing work outside of the current markets.
There is an opportunity in the Fintech sector that truly circumvent all the hurdles that this Coronavirus pandemic and its ensuing recession represents for investors.
A new form of stock-like liquid tradeable instrument that expands the investor’s reach beyond currently localized markets. Help them leave behind language barriers, international fees, or currency conversions so they can acquire the investments they want and move on to the next opportunity.
Now… if you’ve made it this far it’s because you’re looking for something different and effective to make your portfolio’s risk aversion grow.
This is an avenue that also have the following features:
• Calculated risk.
• A clear exit strategy.
• A trillion-dollar market
• And yearly dividends
This is a serious chance to get on the ground-floor of an ambitious, solid, visionary and profitable project that will change the status quo of how finances and investing are done…
And you can find out more about this fintech holding here!