As always, coronavirus has proved us that coins have two sides. Even though world is battling the pandemic, and people are dying from a dangerous virus Covid-19 has proven to be, we can’t deny universe is trying to balance things out – cities are not overcrowded, our planet is recovering from pollution, and things are looking great for investors, even though economy is suffering.
Although it may seem logical to hold your money, many experts will tell you this is an excellent opportunity for investing in stocks, and now that the market has sunk and many blue chip stocks are available at a reasonable price, let’s see what other opportunities are available and where to put your money in 2020.
Blue chip stocks are always a safe bet
If you are fortunate enough to be able to spare more than 5,000 USD for investment, stocks like Amazon, Microsoft, McDonalds, Disney or gaming companies are a great choice. Think about it. McDonalds is not going anywhere in the next 10 years. Same goes for Disney, Microsoft and other established international players. Entertainment industry is also a great option. People will always be interested in a round of Gemix or in playing the latest Call of Duty, no matter what. However, keep in mind stocks are a long term investment. Even if market tanks again in a few years, stocks will keep going up if we place them in a longer timeframe of a decade or two. If you’re in your 30s, that means your investment should pay off well right when you’re ready to retire. A great timing, isn’t it?
Real estate market is challenged, but there are opportunities
Most people still prefer real estate over stocks when it comes to investments. These days, people are somewhat hesitant to make large purchases like buying the house. On the other hand, sellers are reluctant to list their property, especially considering the fact that home tours and appraisals are affected by social distancing and other restrictive measures. However, it is worth noting that the real estate market has outperformed the stock market in most previous economic turmoils. Upcoming recession, unlike the Great Recession of 2008, will not be influenced by the housing market, nor will it be linked to it. That means, in the long run, a smart real estate investment might be very profitable. All you need is a good plan and a good knowledge of your local market.
Gold and precious metals
Gold is traditionally viewed as one of the safest investments, and a great alternative to stocks or real estate in the time of crisis. Many investors consider it to be a “safe haven”, a shelter from more volatile investments, like stocks for example. Even though blue chip companies are generally stable in the long run, even the biggest sometimes dive down (remember Blackberry?), so caution is advised even when purchasing blue chip stocks. On the other hand, earliest forms of currency took their shape in gold coins, meaning this rare, precious, non-corrosive metal of finite supply, is a reliable store of value even today. However, it is worth noting that investing in gold is more of a “protection” in a way, since gold doesn’t pay interests or dividends.