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Last Updated on March 25, 2020 by Lamudi
A lot of things are uncertain these days. Since the novel coronavirus started to spread, unexpected events keep popping up: immediate lockdown of cities, sudden suspension of mass transport, forced work-from-home arrangements, and new cases recorded. Unfortunately, the financial market isn’t exempt from the unpredictable.
Stocks post losses and no one can say what will happen next and how long the crisis will last. As a result, investors flock to safe investments to cushion the blow of the pandemic. If you’re looking to diversify your portfolio to minimize losses, here are some safe assets worth investing in during the time of Covid-19:
Property
This is a promising investment for many reasons. For one, you’ll be able to negotiate better prices for properties. With the increase in choices on real estate platforms like Lamudi, you will have plenty of options and you can also easily contact brokers and agents who have their lines open during this time. This puts you in a better negotiating position for prices. Aside from benefits on the actual price, there’s the possibility of loan interest rates dipping low.
Of course, like any other investment under normal circumstances, it’s important to be discerning in buying property. Work with reputable agents only. Use online property portals to make your search more efficient. Consider investing in different asset classes, say, commercial and industrial real estate, in various locations to further spread out your investments.
Precious Metals
Gold and silver tend to perform well during turbulent times. It’s a hard asset, just like real estate, so you have a readily available source of cash when you need it. And you’re able to convert it easily. What’s more, precious metals are a hedge against currency decline. Ultimately, it offers protection from inflation, which can happen after a crisis.
The one thing you need to watch out for in these investments is the fact that they often come with increased prices during crises, precisely because of the great demand. When determining how much gold you should invest in, consider how much you spend in a month and estimate how long the crisis will last. While the latter may be impossible given the uncertainties in the present, preparing for six months to a year should be enough.
Core Sector Stocks
Utility stocks provide good financial protection because even in the midst of uncertain times, utility products and services are still necessary. Simply put, there’s little to no impact on its performance when there are changes in economic cycles, such as those brought by a public health crisis.
What’s more, utility corporations offering gas, electricity, and water operate within a highly-regulated industry. Government policies serve as barriers to entry in the market, giving companies a strong foothold. In fact, utilities give back excess money from earnings to shareholders. Consider investing in utility stocks to diversify your portfolio and achieve a better level of financial security.
Similar to utility, consumer goods stocks perform well in the midst of a crisis. People will spend money, perhaps more now, on household items and food to survive the outbreak. As a result, these investments will likewise provide some stability in your financial situation.
Yourself
This may not be at the top of your head when it comes to good investments. But it should definitely be one of your priorities, especially now that you most likely have more free time on your hands. If you’re considering getting into the real estate industry yourself, expand your knowledge and improve your skills, as industry leaders mentioned in the last Lamudi webinar. ‘Sharpen the saw,’ they advised, as you spend most of your days indoors.
Learn and explore these tech tools to keep updated on the trends and to know the apps everyone is using nowadays. Brush up on your photography and video editing skills. If you’re a property investor, look for opportunities outside of your sphere of expertise. With these investments, you can be at a greater advantage of catching excellent clients and projects when you get back out there again after the crisis is over.
While a lot of things are uncertain as of the moment, you can take comfort in the fact that there are investments that can give you security and protection. As always, don’t panic. Instead, be rational and productive while you’re in home quarantine. This way, you’ll be able to make better, more sound decisions on your investments.
