The COVID-19 pandemic has inflicted all kinds of unfortunate consequences on the world. One such consequence we don’t talk about very much, however, is that the financial crisis the pandemic brought about may have scared entire generations away from financial investment. China saw the effects of the pandemic on markets first, and not too long thereafter emergency interest rate cuts in the U.S. spooked investors around the world. In many cases, stock exchanges themselves have since recovered. But this doesn’t change the fact that the whole world witnessed virtually unparalleled, uncontrollable crashes. To have had your faith in the very idea of investing shaken would be understandable.
With that said though, most experts would suggest that COVID-19 is no reason to abandon investment. A pandemic-induced financial crash is inevitably going to be devastating for many with investment holdings. But it’s also an extraordinarily unusual event, and not representative at all of normal circumstances. Furthermore, investing now or in the aftermath of COVID-19 can help you to get back on track with your personal finances if you’ve taken a hit due to everything that’s gone on this year.
For that reason, we’re taking a look at some of the investment methods that will make since during and after COVID-19. None of these are new, mind you, but they may appeal to cautious investors as stable, ordinary, and reliable options for getting a post-pandemic portfolio back up and running.
Invest in Real Estate
The idea of real estate investment actually pre-dates most any other means of building wealth, when you consider that property has been valued essentially since the dawn of civilisation. Of course, it works differently today, but this long history is at least some indication of the idea that there is always value in real estate. This won’t change due to COVID-19, even if property markets may ebb and flow with the broader economic recovery. And because of this, real estate may be the right choice for some who are hoping to grow their wealth in the aftermath of the pandemic. Just be sure to explore your options thoroughly, because there are numerous methods of real estate investment you can easily access today.
Open a Brokerage Account
Stock market investment is what many are truly “spooked” over, given how we all watched markets crash back in the spring. But as stated, many of those markets have recovered, and a well-balanced stock portfolio remains one of the most tried-and-true ways of growing wealth over time. However, it’s still something that should be done in a careful and official manner (meaning trendy new investment apps that encourage emotional decision-making may not be the right choice). The traditional option is an online brokerage, which largely acts as a stable and secure account for trading activity. There, you can deposit investment money and purchase stock shares, ultimately building up a diverse portfolio that can grow for you over time.
Give Gold a Shot
If you’re taking an interest in investing during the time of COVID-19, you may well have seen the news that gold has been among the most impressive assets on the planet in its resilience to 2020’s events. Gold has always been a source of value specifically for its ability to do exactly this. When times are difficult for other assets, investors traditionally buy up gold, causing its price to rise while those of other assets fall. It’s happened again this year, which makes gold an interesting option for uneasy investors also. Now, there is some argument to be made that gold may have peaked with regard to this specific crisis, and could see something of a correction in 2021. We aren’t suggesting that you should or shouldn’t invest in it. But given its long-term tendency to gradually gain value, as well as the ongoing state of the pandemic, we’d reiterate that it’s worth a look.
Keep Funding Retirement
The question of how to handle retirement planning has been asked a lot during the pandemic, with experts’ prevailing advice being not to panic (“panic” in this case meaning pull money out of retirement funds to store elsewhere). While it is possible that the stock markets responsible for much of the investment in these accounts could plummet again, or fall to a low rate that it sustains for many months or years, retirement funds are valued specifically because they’re meant to withstand issues and grow over time. Barring another significant collapse, or some compounding factor worsening the economic fallout from COVID-19, we’d suggest that a retirement fund should still be part of your investment plan.
There are of course many other ways to invest, and even many specific strategies to apply where the ideas above are concerned. For justifiably spooked investors though, these may represent some of the most stable and appealing options around.