Truth be told, COVID-19 is not only affecting the health of people. It also affects investments and businesses today. Should you worry about COVID-19? For now, yes, since it was declared by the World Health Organization (WHO) that it has become a pandemic. Your health should be your number one priority. So, if you can do transactions online with regards to your investments, it’s better. As much as possible, avoid going out and monitor your stocks, mutual funds, and other portfolios online. In case you wonder how COVID-19 can affect your investments, here’s how.
Catch me in my live training events! (quick plug)
The heart of why I do these seminars is I want to build a generation of Filipinos with the right foundation in stock investing. I want to bring smart investing to every Filipino around the world! If you would like to know more about how you could time the market check out the training below.
Stock Smarts Manila: March 14, 15, 21, 22 & 28, 2020
Stock Smarts Singapore: May 16 – 17, 2020
Stock Smarts New Zealand: June 6 – 7, 2020
Stock Smarts Sydney: July 11 – 12, 2020
Stock Smarts London: April 18 – 19, 2020
COVID-19 can affect your investments, that’s for sure. However, I can’t give exact statistics on how it can affect your investments since the effects vary. Let’s set an example. If you are running a business right now, your business is losing potential customers each day because of the fear of the people, especially in Metro Manila areas. The effect would depend on what type of business you are running. If your company typically entertains a crowd of customers, for sure, the number of people walking into your store will lessen. Sales will plunge and your income will decrease.
In terms of stocks, the effect is evident as well. In general, there are a lot of investors around the world who are selling their stocks now. Some who chose to hold their stocks are losing as the virus spreads. If you are a smart stock trader, you will find a way to counteract the losses you are experiencing. This is where diversification comes in. There are more stocks going down but there are some that retain and increase in value. If you will be able to find a good company that will still sell amidst the spread of the virus, you can recover your losses.
You can recover but we don’t know how long the pandemic will last. For now, you can keep yourself updated by reading updates and news online. Monitor your investments including your stocks and mutual funds at home. If you can keep your losses at a minimum, the better. When you are seeing losses, try not to be too emotional or greedy. Always study the movement of the market and try to formulate your own strategies to control your investments. This is not the time to panic yet. There are stocks that are bouncing.