When COVID first hit, a lot of fear surrounded stock investing, and some investors chose to cash in and leave before things got worse. Some stocks took a plunge as the pandemic continued, e.g., Carnival Corp. (CCL) and Sabre Corp. (SABR). However, some investors chose to ride out the waves and came out on top. Good examples would be those who bought into Fiverr International (FVRR) and GameStop (GME) when they started gaining momentum in the market. These changes in the market did little to quell concerns new investors had about the market. We cover whether investing during a pandemic is a good idea, what concerns you should address, and some tips investors have used to stay in the game despite the uncertainty that shrouds the stock market presently.
Should you Invest in Stocks now?
A lot is going on in investing circles, and some people even believe that the stock market could come crashing down. Again, there’s no way of telling what could happen in the future because the world is dealing with a pandemic it has not dealt with before. There’s no precedence to help anyone predict the future. That’s the first thing you should keep in mind.
The Good
However, there are some reasons to be hopeful about the future. For example, most countries have rolled out vaccination programs to reduce the severity of the COVID-19 variants. The hope is that when most countries achieve herd immunity, more places of business could open up. People can go back to work, start traveling again, and moving goods across borders, thus fueling the economy.
What should you look for in stocks?
Before investing in the market, please learn as much as you can about stocks. Start from the bottom, figure out how the stock market works, pitfalls you must avoid, key strategies used, and understand the bullish and bearish markets. Regardless of the market’s stability, you can always end up on the losing end if you rely on other people’s advice too much. The best investors know a lot about the market and only tune in to the general perception about the market for further insight, not as their only guide.
You should also consider factors such as:
Stability: Suppose a new variant of COVID comes up; how likely is the stock to hold up in the market?
Cost: At first glance, a stock may look cheap while, in fact, it is expensive because you are not buying a business but rather an index. Ask yourself, in ten years, where will this company be?
The Long Term: There’s a lot of uncertainty in the market. However, that aside, can you make money against the stock in the long term? Are you okay with losing money when the market falls in the short term? How much loss can you withstand before cashing out?
Source: https://theknowledgereview.com/should-you-invest-in-stocks-during-covid-19-to-wait-or-not-to-wait/
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