3 Tips On The Midst Of The Pandemic Investment Opportunities

So be it in the short term, with the volatility that occurred with share prices, some made a profit. The coronavirus is impacting the health of hundreds of thousands of people around the world, but also the global economy, which analysts say this year could go into recession.

The Pandemic Investment Opportunities Increases in product prices, business closings, travel ban, and reduction of tourist activities as a result of the pandemic are some of the consequences.

To avoid having a greater impact on households, Edgar Jiménez, professor at the Utadeo Faculty of Economic and Administrative Sciences, recommends not to panic, which can lead to more losses if you liquidate investments early. The premises, according to Jiménez, are not to get out of investments, assets, and savings (layoffs or voluntary pension funds).

The analyst believes that you have to stay calm if you do not need the resources or the “” at the moment, there is no need to withdraw them since when the market normalizes the balances will slowly correct themselves.

To exemplify the issue, in the case of layoffs, in which balances have been seen to fall as most of the savings are invested in financial market securities, particularly in government debt (TES), when the market, the same goes for them.

However, these titles have the backing of the Colombian State.

Another element that the academic points out is the one that has to do with taking care of the savings, “not going out to buy excessively articles, goods or services that may be unnecessary and that are acquired for fear of the current situation” with compulsory isolation. We must maintain the liquidity necessary to live, but what would be consumed under normal conditions.

And the bottom line in the equation is investing. Jiménez points out that “in difficult times is when the best prices are formed to make investments. In other words, if someone has resources, they can choose whether they want to buy an asset at the lowest price, since the latter are generated, for example, in moments of panic. “

In times of troubled river, it is worth remembering a phrase from the American investor Warren Buffett who said “Be fearful when others are greedy and be greedy when others are fearful.”

A CRISIS WITH SURNAME

All crises have their last name. The current one will go down in history as the coronavirus crisis, but others have already passed, which on the economic issue have been called the dot-com crisis, the subprime crisis or the Lehman Brothers crisis and the lessons they have left, for The least for those who have made a profit from them is that there are always opportunities to invest.

Thus, says the analyst, in the face of the loss of value generated by the selling panic of those who liquidate their investments, negative values ​​are being generated in the assets, which in the eyes of someone with a high-risk profile, becomes an attraction for to buy.

And it is that the action of a company with high results and good prospects in its sector and in the economy may be punished.

Experience says that a serious, large company with a track record in the market after the crisis will survive, so investing in it is a reasonable option.

“In the current crisis the volatility index, which is known as the fear index, reached maximum levels, and now is the time to invest,” says Jiménez.

THE ECONOMY WILL RISE

Severe crises can last up to a year, but they are not eternal and the economic cycle rises again and although the current one is not generated by speculation or artificial bubbles, my health, it will not be eternal either. And it is there where you have to look, according to the Utadeo Financial Laboratory.

At the end of the crises, it is necessary to see which will be the sectors in which the governments look to begin to stimulate the generation of employment, and one of them is construction, so that the related activities may be a viable and reasonable option to invest. Firms benefiting from takeoff may also be connected to sectors such as energy and the financial system, says Edgar Jiménez.

Originally published at https://exploremoney.net.

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