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5 Smart Investments to Make in Times of COVID-19



5 Smart Investments to Make in Times of COVID-19

The novel coronavirus pandemic has infected millions of people around the world at an alarming rate. It has enforced several countries to implement travel bans, as well as lockdown and quarantine restrictions, to contain the speed of the virus. As the global health crisis persists and the number of cases increases, the more evident the economic damage appears.

More than its economic impact, COVID-19 has also disrupted social, professional, and financial environments. While its repercussions to your financial well-being are inevitable and out of your control, your financial knowledge can help you get through these challenging times.

The effect of the pandemic is forcing people to be smarter about their money and investments. If you’re unsure where to start, we’re here to help you out. Below are some investment options you can dive into to help you achieve financial freedom in the future.

1. Put your trust in stocks

For stock investors, it’s heartbreaking to see the fluctuating stock market. But, as the famous Sun Tzu maxim goes, “In the midst of chaos, there is opportunity.” Some people may say that this is a bad time to venture into profitable stock trading, but it can still be an opportunity to double or triple your capital in the long run.

Know that a company’s stock price may plummet hard, but that doesn’t put them in terrible shape, considering a global pandemic causes their market crash. There’s no concrete estimation when this volatile market will recover, but if you have time and money to grow on the side, then take the risk with caution.

2. Look into bonds and bond funds

As cliché as it may sound, don’t put all of your eggs in one basket. It’s essential to diversify your investments, so in case one dips, you have others to cover your losses. To help protect you against investment deficit in the stock market, you can put some of your money on bonds and bond funds.

Buying entity bonds means lending your money to them for a certain period of time. In exchange for this, the entity (e.g., corporations or government) will pay you back the principal amount, including interest, until the end of the maturity date.

On the other hand, bond funds are mutual funds that you invest in a pool with other investors. Bond funds let you buy and sell your fund shares and make additional investments at any time.

3. Consider investing in a franchise

If you’re wondering when you can invest in a franchise, the time is now. The pandemic has brought many businesses down, either temporarily and for good, which implies that you should look into which are affected and which are in demand and profiting.

If you’re eager to venture into a new business now, it’s essential that you research first. Despite the pandemic, heating and air conditioning systems still need to be cleaned. The same goes for water refilling stations, commercial cleaning and restorations services, and fast-casual food businesses. It will be easy for you to find a franchise that meets your interests, time restraints, and financial needs, such as a vacation planning or a dog franchise.

When weighing your options, make sure to ask the franchisors how the pandemic is affecting their business. Transparency is one of the critical factors when it comes to franchising and in finding the right business outfit for you.

4. Set up an online business

Ever since the pandemic, you may have noticed that many old and new businesses pop up online. Since people are quarantined in their homes, businesses adapted to the change and took their offline business online. This is an easy and convenient way to make extra cash at home.

From food, beauty products, leather goods, furniture, books, home decor, to gadgets, you’ll find all sorts of products sold online these days. Thanks to new technologies and delivery services, running your business online, and shipping your products to customers’ doorsteps is easier now.

Whether it’s a food business or fitness consultancy sessions, you can set it up and start selling online with ease and convenience.

5. Invest in yourself

These days, you focus too much on what’s happening around you and how you would get through the pandemic and less on yourself. Since you’re stuck at home, why not take this opportunity to take online classes or training to help you upskill or cross-skill?

Investing in your personal and professional growth can bring you higher returns in the future. Expanding your skillset can make you an excellent asset to your company or an exceptional candidate to an employer. Moreover, the time, effort, and resources you put into your growth can positively impact your quality of life.

Wrapping it up

It’s okay if you feel rattled right now. You are living and surviving through a global health crisis, that’s understandable. When you’re ready to take better control over your finances, consider the investments recommendations above. Make sure to be prepared to dive into these opportunities when the time is right and emerge from this pandemic in a healthy financial state.

Adrian is a stock trading educator and the founder of Enlightened Stock Trading. He helps busy professionals achieve financial freedom sooner by creating profitable stock trading systems that suit their personality and lifestyle.

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