Since it’s declared as the global pandemic by WHO, COVID-19 has been showing real impacts on the global economy. It has now amplified the speculations and eventual reality of a looming global recession that drives uncertainty for investments.
If you are privileged to still be receiving steady paychecks at the moment, then it’s only wise for you to take advantage of the situation and make the most of it. After some extensive research, the purpose of this post is to share with you five ways to invest money wisely in the COVID 19 economy as outlined below:
The food sector and agiculture at large, is one of those sectors less affected by COVID 19 economy negatively. The market highly demands food availability during this pandemic and anytime in the future. In fact, food production will need to increase continuously to achieve food security for the next 30 years. Investment in the food and agricultural sector is crucial to make livestock accessible and to achieve a sustainable food production system for sure.
The investment in agriculture sector is expected to continue rising as it’s currently a dominant player in the current economy, especially the plant based food industry.
Smallholders play a key role in the business to boost food production to cover market demand and food security. You can invest your money in respective and prospective companies in the industry. The good news is that you don’t have to be a big holder to get a profitable investment in the food and agriculture sector.
COVID 19 pandemic has massively affected healthcare both in the private and public sector. Europe as one of the most affected continents welcomes investments in public health. Two major sectors concerned include life sciences industries and healthcare providers. The healthcare providers including clinics and hospitals have to recruit specialists and more medical workers. The life sciences industries are on a race to produce COVID 19 vaccines and treatment drugs. There are potential investable themes for private equity of these sectors you can consider for profitable investment.
Pharmacies have become one industry in the health sector that benefited from COVID 19 pandemic. The growing demand for drugs is administered directly from health provider patients (clinics or hospitals) and on behalf of insurers. This has increased pharmaceutical production from prescription, email transaction, and distribution to pharmacies or drug stores. Investing your money in pharmacy is a wise option in these particular times.
While the pandemic has massively impacted the centralized system at the national and global levels, the decentralized system seems to come out as the obvious alternatives. Indeed, the cryptocurrency had previously fallen at the beginning of March along with stocks but has been on a massive bullrun and growing confidently these past two months. Bitcoin as the leading cryptocurrency has received massive investments from institutional investors through their Grayscale Bitcoin Trust.
For those who live in cryptocurrency friendly countries or regions, investing in this digital asset could be the best and wisest decision to make during this pandemic. Why is that? The growing interest of institutional investors is an indicator of a mature market which is a good sign for individual investors. Bitcoin itself has been marching to $100,000 since last week. Some popular Cryptocurrencies: Bitcoin, Ethereum, Litecoin, and Ripple.
Putting cryptocurrency in your investment portfolios has the best moment now while the fiat currencies facing huge challenges. Bitcoin is the most suggested and for the safe rate(if you’re not too confident), keep it one percent of portfolios in this cryptocurrency. In fact, it’s the best time to buy Bitcoin and.or other cryptocurrency as the central banks printing the money.
Reducing the percentage of the portfolio in stocks is advised but zeroing isn’t an option. The key is to choose the companies and to recognize the indicators of their business stock performance during COVID 19 economy.
Demand: Recognize the businesses affected by COVID 19 pandemic in positive ways. Some businesses like food supply companies, delivery, or carrier companies, big groceries have high demand during this pandemic.
Price with Inflation: While some retailers are collapsing during the pandemic, bigger retailers can survive and even grow as they can increase prices following inflation. These also include pharmaceutical or medical companies.
Basic Necessities: Foods and energy are business with no elastic values as people would always need them for consumption. Investing in their stocks are considered as they’d not collapse at anytime soon due to static demand.
Inexpensive Luxuries: Entertainment companies like TV cables, gaming, subscribed TV shows, application, and other inexpensive luxuries grows in demand during the pandemic. Some owners/CEOs of these companies experience massive increases in their assets.
Study these factors and you can actually invest in stock safely and get the benefits from COVID 19 situation.
5. Foreign Exchange Retail
The pandemic has greatly affected some currencies but also encouraging retail investors to trade at a wider scale. In fact, forex trading volume by individuals has been increasing following the exchange rate volatility of dollar to other currencies. The retail forex traders have gained valuable momentum in this period.
While the institutional traders have been closing their offices, working from home has given birth to more retail traders. More individual investors trade currencies on the market as they can take a full-day control. This shift has also impacted the global market. Many existing individual traders can also intensify their trading activities since work from home policy was run.
It could be the best time to start trading and get your forex trading tools like the recently launched and endorsed auto trading forex harmonic scanner for individual and corporate portfolios.
The fast-growing investors and trading experts (and even the newbies) have adopted the tool as it automates the rigorous process and makes trading seamless between fiat currencies. During the heavy volatility, you can trade multiple times in small lots and keep your investment healthy. As you’re working from home, you can fully monitor the market and make valuable decisions through critical hours even right from your smartphone.
Investing your money wisely during COVID 19 economy isn’t only saving your asset and there are also rooms for you to grow them up. While each investment has its own risks, there are some shifts and changes that turn them into opportunities. Take wise steps to invest your money during these hard times.