Investment during the current Covid-19 pandemic is something that scares a lot of people. Jim L. McEnerney has watched the market go up and down alongside everybody else and believes that there are wise investments a person can make to avoid losing a lot of money. These tips are designed for the current crisis but may also help you even after it is over, he says.
Cash is Huge, Jim L. McEnerney Says
As the market reacts heavily to weak job reports, surges of the virus, and reopenings throughout the country, Jim L. McEnerney says that there’s one safe investment a person can make: cash and gold. Though gold and cash have surges and valleys from time to time, Jim McEnerney states that these changes are minor compared to the types of wild changes you’ll see in the market.
That’s because gold and cash are the standards for so many economies, he states, and don’t have anywhere near the volatility of stocks. And their value doesn’t change if a massive selloff occurs: these selloffs can trigger market tumbles by creating fear in investors, he says, but cash and gold rarely suffer from any adverse reaction to these sudden and sometimes devastating changes.
That said, Jim L. McEnerney doesn’t suggest only investing in gold and cash. While the stability of these assets is a bonus during this frightening market, they won’t enhance your portfolio enough to increase your wealth. As a result, it is essential to know what kind of stocks and bonds are an excellent choice. Thankfully, Jim McEnerney has some suggestions that could help you.
Go for Individual Stocks, No Index Funds
Index funds are an attractive choice when the market is stable, Jim L. McEnerney says because they distribute your wealth in a more even manner. However, this choice isn’t a wise one in such an up and down market, he states, because individual stocks may rise faster than an index fund. For example, companies investing in Covid-19 cures are getting flush with investment almost overnight.
During this time, Jim L. McEnerney says, it is essential to remember that this market struggle is somewhat artificial in nature. Yes, there was a bit of a balloon in the country’s investment and the economy, he states, but the substantial collapse is mostly due to Covid-19. He wholeheartedly believes that a rebound will occur and will put the nation back where it was before, hopefully, a bit wiser and stronger.
That rebound will take time, Jim L. McEnerney says, so it is good to invest in individuals stocks that looked good to you before Covid-19. Right now, many of these stocks are probably quite low and may be easy to afford. And when the rebound occurs, and they start surging, you’ll find yourself getting a surprising amount of wealth in a relatively quick time, Jim L. McEnerney believes.