The outcome of the Covid-19 pandemic for markets and the global economy cannot yet be fully predicted.
The fluctuations within the financial markets have been high in the last few months and it is reflected in every sector of the economy and Investors are having a hard time forming proper decisions regarding their investments.
When situations of uncertainty arise, the best course of action is to be well- informed by following news and credible platforms that impact the markets. Periods of heightened uncertainty can lead to bigger opportunities for investors who are ready to take advantage of such uncertainty in the markets. You must also take out time to analyze which sectors of the economy will have more gain or loss in a crisis and decide on a long-term plan.
Being in uncertain times as an investor does not mean all your investments should be put on hold, it means ‘thread carefully’ as not all investments are safe at this time.
Here are some quick tips to keep in mind.
- Be calm and seek professional advice:
As an investor, do not make quick moves on your own without the backing of a financial adviser. The best option in situations like these is to meet with your financial adviser and share your concerns about your investments. You also need to resist the urge to make decisions based on isolated events and unwarranted panic. If you have already invested, stick to a defined long-term investment strategy. By doing this, you will avoid selling your investments quickly and below the original purchase price. You also stand a chance to enjoy the benefits of a future market recovery.
- Low-risk investment:
Do not take unnecessary risks with your investments in uncertain times, you need to play safe. You don’t want to throw all your hard-earned money in the drain. So, look out for companies with good cash flow and low debt as viable investment options.
- Invest in consumer staples-
When looking for a safe place to make a profitable investment during a crisis, focus on consumer staples or products that people will continue to buy regardless of their financial state or financial situation of the country. This includes major industries like transportation and logistics. You just need to take a closer look around you at what people cannot do without in this period and invest in it.
If you want to make profitable investments in these uncertain times, do not put all your eggs in one basket. Diversifying across industries in a period of recession will protect you from losing your money if a product or industry loses value. Investing in a diversified manner based on a personal investment profile will minimize the extent to which individual investments have a negative impact on your assets. If you cannot create a diversified portfolio, seek professional support.
- Invest in real estate-
Uncertain times lead to a drop in home values. A major crisis in the economy can bring unexpected losses to different industries, Real estate however, seems to be immune to the effects of this crisis. Provided wise investment decisions are made, you may be able to buy a property at a lower price during a recession and sell it at a higher price when markets recover. While you wait for the economy to bounce back, you may rent it out to generate passive income.
- Dividend stocks-
Dividend stocks give you passive income. It is highly recommended that you invest in companies with low debt-to-equity ratios. Invest in a reliable company that has increased their dividend payouts for at least 25 consecutive years.
An investment in gold is a profitable option. Gold is known for retaining its value during periods of uncertainty in the economy. Precious metals generally are safe investments at these times and may even increase in value in times of economic crisis.
- Long term investment strategy-
No matter the time or the season, whether times are good or trying, an investor must stick to a long-term investment strategy. Otherwise, you face the risk of adjusting in rocky times, which leads to losses. If you are willing to take up more risks to enjoy higher long-term returns, then you must be able to withstand market fluctuations in the short and medium-term. With patience, it will pay off.
- Partner with Smash invest-
The uncertain outlook of the financial markets is inevitably part of today’s economic situation. With the right investment partner, you can make your assets resilient.
Our experienced team of experts securely invest in transportation and logistics, directing your investment towards a single goal- financial freedom.
The funds from investors are invested in the transportation sector to generate revenue and returns on investments. We have various investment plans that are tailored to meet your needs.
You can also invest via an asset management mandate where the investment strategy defined with you is managed and implemented by experts.
Don’t have enough to invest right now, no problem. Join our refer and earn program, and earn for referral you bring to the company.
With Smash Invest, there is something for everyone.
To partner with us or kick start your investments today- visit smashinvest.com or call 08033315956.