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Investing Wisely in the Time of Coronavirus

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Ridiculous! Outrageous! Scandalous! I mean what you are saying. How could you even broach this topic in this critical hour? The future seems grim and dark. Scraping through the present is all one can think of. But hey, hang on. No calamity has lasted forever and this too shall pass. But there is a lesson to learn here. Only a decade has passed since we witnessed the last global recession and the malady has returned to haunt us again. So, are we tacitly being encouraged to indulge in long-term financial planning and make sound investments for the coming 10 years? We perhaps are.

Below, you will be enlightened on how to invest wisely in this dire time of coronavirus:

1. Leverage expertise of financial experts  

“Leave it to experts” is a cliché but the maxim will forever true. Keeping a track of the happenings in a stock market and predicting the future wisely is indeed the prerogative of seasoned pros who have knowledge and experience to fall back on.

2. Pound cost averaging

Pound cost averaging dissuades you from investing a hefty amount in one go and is about making investments at regular intervals. This way more shares are bought when the share prices drops and less are bought when the price rises. Moreover, markets do not hit rock bottom all of a sudden. Any downfall at least transpires over a period of a few weeks, thereby making pound cost averaging an astute practice.

3. Invest when the time is not ripe

Now this may again seem bizarre to you. However, speak with experts as recommended in the first guideline and you will find that they will agree to this, albeit not always. Often when you feel the time is not ripe is when you may be asked to make an investment.

 4. Be a little far-sighted

Alexa, Uber, Netflix, Airbnb, Android and Instagram were unheard of 10 years back. Just imagine how much those who must have predicted about these would have benefitted by investing in the same. The cycle will surely repeat itself come 2030. So, how about being a little far-sighted and investing in future phenomenons? You never know, you may strike gold.

Now, to acquire more knowledge on the aforementioned topic, you can download the report “Taking advantage of the panic” by Clear Capital Markets by clicking the link below:   

Risk Warning: The value of shares can fall as well as rise; you may not necessarily get back the amount you invested. Past performance is no guarantee of future performance. Clear Capital Markets Limited is authorised and regulated by the Financial Conduct Authority FRN 706689. 

This blog post is written by Bob Roberts, Director at Clear Capital Markets, Fully RDR Compliant (Level 6 / Valid SPS), FSA CF30 Registered, CISI Level 6 Certificate in Private Client Investment Advice & Management (PCIAM), CISI Level 4 Investment, Risk and Taxation (Part of the IAD), CISI Level 3 Certificate in Investments (Derivatives), Unit 1: FSA Financial Regulation (2010),Unit 3 Derivatives (2011)

Areas of expertise:
wealth management, portfolio management, HNW private and professional client relationship management, corporate finance, long/short and hedging strategies, risk management, equities & derivatives.

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