Although you may think that investing during the Coronavirus pandemic is simply the worst idea in the world, specialists assure that all depends on your strategy. Learn how to keep investing even through a crisis!
Many people would think you went totally crazy during quarantine if you are investing during the Coronavirus outbreak. However, it may not be as crazy as they think! You just need to make some adjustments.
Here are some tips you can use to be successful in investing during a pandemic!
Three tips to invest during the pandemic
1. Never (even when there's not a pandemic) trade with money you can't afford to lose. It's way too risky and you may end up losing more money than what you actually have.
2. Always remember to diversify! Don't get overambitious and invest everything you've got in one stock.
There are mainly four types of companies in which you could spread your investment without lots of risks:
- Companies you know that will still be around after the crisis. For example, oil companies.
- Companies that could potentially go under, but can easily turn the situation around. This may be risky, so you will need to choose wisely. For example, airlines.
- Companies that tend to be safe because of the products they sell. People will probably continue using their products. For example, Amazon or Adobe.
- Companies that currently benefit from the crisis and will probably become stronger because of it. For example, Zoom.
3. Do not touch the money in your 401(k)! Nevertheless, if you are tempted, now you are allowed to borrow from your account without penalties.