Investing in the Stock Market During COVID-19.

Investing in the Stock Market During COVID-19.

The COVID-19 pandemic has toppled economies and has sent the global markets spiraling. While many investors see this as a time to shy away from the markets, equal amounts see it as an opportunity to make money. Share prices are plummeting and many are on the hunt for a bargain. Below are some things to consider before investing in today’s market.

  1. First Examine Your Emergency Fund
    The pandemic has caused a great deal of stress on employment and there have been mass layoffs taking place across the country. Ask yourself if you have enough savings that you could cover up to six months expenses if something were to happen to your job. If not, it may be smart to focus on your savings rather than investments in case you find yourself strapped for cash.
  2. Take a Look at Your Time Horizon
    Are you going to need this money in the next 10 years? If the answer is yes, consider keeping your money out of the stock market. Stock markets are facing unprecedented amounts of uncertainty and no one knows when or how they will recover. If you think you might want or need the money in the near future, you may be better suited talking to your advisor about how you can make that money work for you while protecting it from market volatility.
  3. Do You Know Your Strategy?
    Blindly throwing money into the stock market is rarely rewarded. Take the time to work with a professional investment advisor to evaluate your risk tolerance, time horizons, objectives, and develop an investment strategy. An advisor can help you keep your expectations reasonable and recommend investments that are suitable for your goals and financial situation.

Interest rates are at a record low and businesses are having a difficult time recovering from the profit losses they continue to experience. There doesn’t seem to be an imminent solution to COVID-19 and it won’t be going anywhere any time soon. Safety of capital should be a top priority for all investors right now. Your advisor can help you navigate these difficult market conditions and make decisions that will enhance your investment portfolio.

14 thoughts on “Investing in the Stock Market During COVID-19.

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