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Investing During a Pandemic – Where to Look

InvestingDuringPandemic

Investing can be challenging at the best of times if you’re not sure what you’re doing. A global pandemic caused by Coronavirus, or COVID-19, is not bound to make it any easier. But investors owe it to themselves to keep aware and alert about what is going on in the economy.

Key Points
  • Investing at any time involves the potential for profit or loss
  • COVID-19 is changing how we think about money and investments
  • There may be opportunities for those willing to find them

Where Should You Put Your Money?

Tech Time

Tech stocks are popular right now – and why not? With the population only now beginning to come out of social distancing measures, and many, many more unsure if they should do so, people are in their homes more than ever before, for longer periods, and with their whole families, chosen or otherwise. Investing during pandemic is something more people than ever are looking at, from their homes.

People are ordering groceries from home, prescriptions from home, cars from home, books from home. The possibilities are endless, and not just for large companies like Amazon or Wish. Classes and corporate meetings are taking place over Zoom, Cisco Webex, and Google. Stocks for these entities are attractive because so many people are currently using them.

Real Estate

For those investors thinking they have both money and time, real estate is still an attractive option. Travel may not bounce back anytime soon, meaning cruising and hotels, but it is still in human nature to gather with friends and family. A beach house, a second home in the lake country, these may still be popular options for people to rent from newly minted landlords.

The financial world and markets are all upset these days, with all sorts of things happening that are completely out of the norm. Countries are forced to bail out citizens, and are choosing to bail out corporations. Countries are printing money and enacting stimulus packages, which can affect retirement plans for many. There’s record unemployment but the Stock Market is in full swing.

Why Use a Self-Directed IRA

A Self-Directed IRA is similar to a traditional IRA, but is not identical, as it has some distinct differences. A Self-Directed IRA provides more investment options to IRA holders.

By using this retirement structure, investors can diversify their investment opportunities and invest outside of stocks, bonds, mutual funds, and other traditional assets. They can still make traditional asset investments, but if they’re more comfortable investing in assets like real estate and precious metals, the Self-Directed IRA LLC allows them to do so.

Ultimately, this diversifies the assets inside of an investor’s retirement account.

Liquidity

Typical safe havens like gold and cryptocurrencies, that either retain their values or increase during crisis, may be viewed as less reliable as investors want liquid assets. Liquid assets are considered such if they can be easily converted to cash. An asset that can be readily sold is more liquid than something that may take a long time to sell, like real estate.

It’s also a great idea to hold cash in your IRA. It won’t be earning money, but it won’t be losing any either. It can also serve as an emergency fund if the need arises.

Individual Investing During Pandemic

There’s no substitute for a financial advisor during times of stress, and investing during pandemic is not necessarily the time to go out on a limb all by yourself. But as an investor looking for options, and places to put money, there are many opportunities out there. Everyone’s ability to risk, financial situation, and tolerance for potential loss is individualized.

The moral of the story is don’t let the financial crisis get you down. Stay on track with your investments and your retirement planning. Investing during a pandemic is tricky, so be sure to get all the help you can. By utilizing a Self-Directed IRA, you can invest in traditional, as well alternative, investments. It’s a great way to diversify your portfolio. Check out our latest podcast for some helpful tips on the equity markets and current economy.

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