The financial crisis created by the coronavirus pandemic has been unprecedented globally. Market volatility is at levels we haven’t seen in a long time and the uncertainty of when the markets will normalize is concerning for many investors. While it’s understandable for investors to not know what to do with their money, we have some investment strategies to strongly consider to take advantage of these times. The short-term emotions many people have is to pull their money out of the market until things settle down. However, now is the time to be most aggressive with your investments.
Don’t Let Fear Determine Your Investment Decisions
It’s a valid feeling to have fear with so much uncertainty in the world right now. This fear can cause many investors to become more cautious or conservative, but now is not the time to make a quick short-term decision that could impact your long-term investments negatively. If you have the luxury of extra cash, look for an investment opportunity that provides the highest likelihood of rebounding significantly once the pandemic is over. The fear of throwing away money is real, but the chances of this becoming a reality are much lower than the potential positive results.
Invest Aggressively Now
No one knows how long the coronavirus pandemic will continue impacting the world. Waiting for the stock prices to fall even lower before investing is tempting, but you’ll still benefit from doing so now. The more aggressive you are with your investment strategies now, the higher the potential profits will be in the future. Patience is required any time you make an aggressive investment with market volatility being how it is now, so don’t let any short-term downfalls deter you from doing so.
Increase 401(k) Contributions
Investors who may not have a pile of cash laying around and ready to make a new investment can still take advantage of these unique times. If you have an employer-sponsored 401(k) plan or another similar retirement plan, consider bumping up your contributions as much as you’re comfortable with. By doing this, you won’t feel as much of a short-term impact since the money comes directly out of your paycheck before you even see it. Make your extra contributions to broad market index funds that are low-cost to make the most out of your increased contribution.
Stock Investing Info always looks for ways for investors to take advantage of market volatility, especially during the global financial crisis we are in. There are many different ways you can approach your investments, but the main thing to remember is to not let fear deter you from achieving the long-term goals you have already set. The global economy and market will bounce back at some point, and by investing aggressively now, you’ll be able to take advantage of it. If you have any questions, concerns or just want to talk about investment strategies, contact us at any time.