Many experienced investors believe this has been one of their most difficult years for portfolio management. The coronavirus pandemic has sparked market volatility worldwide and in virtually every industry. And with experienced investors not knowing what steps to take on their established portfolio, it’s even more difficult for a new investor to know how to begin an investment portfolio during these times. Short-term outlooks aren’t very promising at the moment, but when you focus on the long-term, you can narrow down your options and see a clearer path to financial success.
Investment Options With Good Current Value
Two of the hardest-hit industries since the beginning of the pandemic have been the hospitality and travel industries. People are spending less money on recreation that requires travel and gathering in large groups for their safety. While now is not a great time to own stocks in either of these industries, they do offer a good value for a new investor. The biggest risk factor is not knowing which companies will survive through the pandemic since we don’t know how much longer it will be impactful. Most indications are the industries will return to normal, and even spike significantly for a short period, but we simply don’t know when this will occur.
Technology And Healthcare Should Continue To Thrive
Safer bets when beginning an investment portfolio lies within the technology and healthcare sectors. These are two of the industries that have stood out among the rest since the start of the coronavirus pandemic and should only increase in value. With the emergence of telehealth and telemedicine services proving their viability, these services are expected to stick around and evolve long after the pandemic ends. Companies like Zoom Video Communications and Teladoc Health are examples of companies in these industries that have taken significant leaps over the last several months.
Diversification Can Offset Some Market Volatility
It’s difficult to know what market volatility will look like one month from now, much less one year from now. The problem with waiting until market volatility stabilizes is you could be missing out on great investment opportunities in the present time. A common way to combat some of the volatility is through diversification. Having market exposure in risky stocks, as well as safer stocks, international investments, and many other strategies can give you a well-balanced portfolio. Now is a great time to diversify so you can monitor the investments over the next several months and determine at that point which ones you may want to invest more in.
You can still achieve financial success amid the market volatility created by the coronavirus pandemic. Stock Investing Info is here to walk you through the various options available to ensure you make the right decisions based on your risk tolerance. We follow the markets closely, both domestically and internationally, so don’t hesitate to contact us at any time if you have questions about any particular investment option.