Should I buy stocks amid the coronavirus crisis?

The coronavirus pandemic has changed the way we live our lives, and that also includes the way we invest our money. Due to the pandemic, the global stock market is unstable and very choppy. As a result, it’s very hard to figure out which is the best place to invest your money and if stocks are actually a good pick or not.

Is this the right time to buy stocks?

More than 70% of investors believe that the FTSE 100 fall showed it’s a great idea to invest in stocks. Why is that important? A lot of stocks are undervalued due to the Covid-19 pandemic, and that means you can access tremendous results. Investing during the pandemic is just as challenging and risky as regular investing. So you still need to study the market, see the prices and stock history to identify if this is a good investment opportunity at this time.

Plus, you need to keep in mind that share markets are volatile. Things like high inflation, low GDP numbers and economic issues all over the globe can have a very important role in price changes. So the best thing we can do at this time is to assess the market and track the stock history to pinpoint which stocks deliver the better value.

Should you think about long term investments?

This can indeed be a good time for long term investments. The most important aspect to consider at this time is the fact that you should buy the high valuation stocks at a low level. There are a few things to consider here too. For example, the stock has to be at zero debt, and it also needs to have a high profit margin. The company itself needs to have the capacity to bring in a big surge. If the stock is strong and it has a good history, then that’s definitely the right approach to pursue in a situation like this.

You do need to think about the future when you invest in stocks during a pandemic. Right now the stock prices won’t really give you an amazing ROI, and that’s why you want to only invest if you have a long term plan. If you’re an equity investor, then you want to turn your focus towards the multi cap and large cap stocks if possible. For those that want to invest in bonds, a good idea are the corporate bond funds since they are safer.

Conclusion

The potential to invest during the pandemic is huge, but you do need to have some trade-offs. You never really know exactly how much you can invest, and there are obvious restrictions in a situation like this. You want to make sure that you focus on growth and value, and if you manage it correctly, the payoff alone can be extremely impressive. It’s more important than ever to time your investments and avoid any random investment to begin with. Due to the pandemic, you need to study the local and global economy as well as the national markets to see how stocks have evolved during this time.