Invest your Money in Coronavirus Times
Invest your Money -The coronavirus crisis has sunk many stock exchanges around the world. In the United States, the major indices fell similarly. It corresponded to a loss of 14 percent.
Investors hadn’t seen sell-offs since the financial crisis. Investors around the world are concerned and are asking themselves many questions: what’s next? What does this mean for your Invest your Money? Do sales make sense? How can you take benefit of the crisis? Is gold still a paradise? Here is a brief overview.
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Other Price Reductions are Pending
After an acute failure in the last week, markets initially calmed down with expectations that the US Federal Reserve could cut interest rates. Investors were skeptical that the Fed hadn’t even waited until the March 15 ordinary meeting.
The OECD also sounds the alarm: if the coronavirus spreads further, the eurozone could slide into recession. It would not be without consequences for the markets.
However, it is also conceivable that spring will keep the virus at bay with warmer temperatures, and the number of diseases and economic consequences will not increase.
The indices recovered slightly yesterday. Anyway: in any case, the virus should leave traces in the balance sheets.
Do you Sell or Stay Out?
The most sensible plan depends on the investment horizon. Anyone with a short-term outlook should know that the portfolio can continue to slide towards the red.
If you think it is durable, you can avoid the virus or even buy it cheaper on new dives in the markets.
However, it has technically demonstrated that “market timing,” i.e., trying to get the best exit time and the cheapest entry time, is favorable at best. Therefore, investors who need short-term cash should sell.
Secure your Deposit
If you are worried, you can ensure your portfolio with stop rates. To do this, a sales order must be activate for each position, but this only occurs at a specific lower point.
Purchase orders are an alternative. They rise when the market goes down and therefore guarantee the deposit.
Broad indices corresponding to the investment regions of the portfolio are appropriate as base values. However, hedging has its price: if the markets rise against expectations, you lose money.
Savings and Funds from the Gold Plan
The crisis can also have positive features for investors with fund savings plans.
Because those who regularly invest in fixed amounts get more shares at the same price due to significantly lower prices.
A small part of the gold coin of the general crisis, about five percent of fixed assets, is generally considered good insurance.
However, unlike equities, gold does not generate regular returns. It had barely benefited from selling on the equity markets recently, but previously it had grown enormously, around twelve percent since the beginning of December.
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