Three Steps to Take to Prevent COVID-19 From Plummeting Your Investments
In times of a pandemic, the world can go into disarray in every sense. This behavior is not without reason. When the medical field starts reaching full capacity and the traditional flow of supply and demand is thrown off without warning, there can be an understandable amount of fear and frustration.
One area that really sees an impact during these emotional times is the economy. If you are looking to keep your investments afloat during the economic hardship of a pandemic, the task is not impossible, it just takes a few strategic steps.
Avoid Impulse Purchases
As we have all witnessed in the past couple of weeks, times of global hardship can cause the population to react in a variety of ways. A major pattern seen during these times is impulse buying. This can be as simple as clearing the shelves of toilet paper, or as drastic as investing in every stock that is selling for below-market value. No matter where your impulse is calling you to spend, it is important to take a step back and think strategically. What you do with your money during times of global crisis is more detrimental to your finances than at any other time. When the economy is in disarray, it is important that you save the money that you have and only make well-thought-out purchases and investments.
Watch and Study Numbers
While it is important to avoid spending money impulsively, many have already invested money in IRAs and stocks, and these people might find benefit in moving their investments around to more feasible markets. If you have money invested that you have the flexibility to gamble with, then you might consider moving your own investments depending on the wave of the economy and your long term plan with the money. If you are looking to get the most out of your investments, in the long run, it might be worth watching the numbers in a variety of investment markets. By watching the number you might be able to identify areas that are coming in significantly below market value, and you might be able to enter the market while it is low. This does not mean to jump impulsively into an investment market, it simply means to watch the numbers and try to enter the new investment game when the numbers indicate that it is likely the time to jump.
Look Into the Real Estate Market
If you have previously considered investing in property, or if you feel a pull to remove your investments from the stock market but don’t know where to invest instead, this pandemic may provide a rare opportunity for you to enter the Chicago area real estate market at a great price. In the panic of a pandemic, people often begin to list their houses out of fear. This creates a market that is much more catered to the buyer, as many people list their houses low and are more open than usual to negotiations in hopes of just getting out from under the immediate pressure of homeownership. If you have adequately prepared and saved to purchase real estate whether as a primary residence or an investment property, you could have an advantage over the market that you will likely never see in another circumstance.
If you are interested in investing in a new home or property while the market is low, and you are looking for an experienced attorney to guide you through the process from beginning to end to help ensure that you are getting the fairest deal, contact Tannehill Law today.
MOST IMPORTANTLY… do your best to stay safe and healthy!
