COVID19 has left many people jobless all over the world, however, all of us must do what we can to secure our financial future and protect our wealth in these uncertain times. In this situation, here are some of the best investment options to minimize your risk during a pandemic.
- Invest but don’t make reckless moves
Since after the outbreak of the global pandemic, the first few weeks involved a lot of panic in buying even the essential things. During the lockdown, you understood that many things were not at all mandatory but still, you wasted a lot of money purchasing them. Save that money and invest in a permanent fund or property.
However, most of the people fall prey to immediate investment out of fear of missing out. If you intend to buy securities like stocks, mutual funds, or bonds, it is better to understand that you are going to invest at your own risk.
- You may want to hold cash
Some of the investment strategies are too risky and you might lose some or all of the money in your hand. Investing only in cash investments may be unsuitable for the long term. The money you invest will be future rewarding.
The well known mutual fund Tweedy Browne Global Value Fund allotted approximately 6.56 % of its holdings in short term debt securities and cash reserves. Cash on hand can help as a shield against the risk in the security market.
- Consider firearm stocks
There was a significant increase in gun sales in March. So, investing in gun stocks can be a good option but surely not for everyone. The pandemic uncertainties gave rise to the growth in firearm stock.
Sturm and Ruger and American Outdoor Brand Corporation, in April, posted the growth in gun sales month-over-month around 17% and 14% respectively.
- Cryptocurrencies can be a good option
Cryptocurrencies and blockchain rooted assets like bitcoin and ethereum can be the best option to invest in. During the pandemic, cryptocurrencies have performed comparatively well over the traditional assets and the price of bitcoin fell below $4000 before recovering back to $9000 per bitcoin in May, after the accumulation of overnight liquidations in March.
This clearly shows bitcoin assets are highly volatile. However, during the pandemic, BTC has performed better than the stock market because the price of BTC has fallen by only 5% compared to a 16% drop in the stock market according to MSCI (Morgan Stanley Capital International) All-Country World Index.
- Tech Stocks
Since the outbreak of COVID19, consumer tech and high tech sectors have outperformed many other sectors. Technology stocks such as Microsoft (MSFT), Zoom Video Communications (ZM), and Slack technologies (WORK) are worth over $50 million more since the coronavirus hit.
Zoom has over 300 million daily participants. So, investing in these companies is a very good option because it will continue operating in work-from-home conditions as well as “normal” conditions.
Although no allocation plan is free from risk, you need to take the steps that could minimize your exposure to risk during a pandemic. You must consider these options to build future financial security.
