Since the outbreak of COVID19, the market is sluggish. Now is the time to worry about the money you have invested in different assets. Since the beginning of the years, economic conditions are not in favour, and there is still no hope so of a truth Investments Doubts sets in.
Uncertainty is an indispensable part of the investment world. Whether you invest your money in stocks or property, there is always a risk of bearing losses. The market is exceptionally volatile, which is why you need to be strategic. However, strategies have failed during the pandemic COVID19.
You must have several doubts in your mind about investing money. Some of the questions have been answered below.
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How long will the market take to go up?
Observing the current scenario, no one can estimate how long the market will take to recover. Whether you have long-term investment goals or short term, you need to analyse the trends of the market to see any recovery carefully.
If you have invested in long-term investments, economic uncertainty will have no much impact. If you have invested in short-term investments, you may hold them for a bit longer time to recover the losses, but that will not stop you from reaching long-term investment goals.
What are the best investments to make?
As of now, answering this question straightforwardly is not possible. All investments move as the market goes up and down. For instance, if you have invested in stocks, you will naturally get a smaller proportion of profits because of low business performance.
However, if you have purchased a bond of a company, you will likely be safer. Now is not the time to invest your money in any investment, but at the same time, you will have to hold patience to recover money. It is hard to tell what will be the best investments in Ireland, but some of them are safer.
What to do with your current investment
Of course, you will be concerned about your current investments. Since you know that the market is subject to uncertainty, you should wait when it recovers. If you are not able to cope up with your financial anxiety, you should talk to your financial advisor.
- Financial advisors can evaluate your financial position and accordingly plan your investments.
- The hasty decision can take a toll on your finances.
- A financial advisor can predict market performance before giving you suggestions.
Most of the investors follow their peers but do not forget that your investment is not the same as your peers. Further, your investment goals and financial situation are also different. Following your peers without analysing the reason behind their move can be hazardous.
Should you sell your investment?
When it comes to investing money, uncertainty is pervasive. However, not all investors can bear the risk caused by change. When you see the market going down, you can immediately decide to cash in your investment. If you want to earn profits, you cannot make emotional decisions.
It is not the first time when the market is facing a crash. Everybody knows that the market scan quickly recovers after the shock. Even if the pandemic COVID19 seems to continue, you should retain your investments. Let the market recover so that you could earn the right amount of profits.
Why not all investments have fallen?
Even though the market is not in good condition, you will see several investments are performing well. Investors with diversified investment portfolios are at a better situation than those who have put all eggs into one basket. If you have a diversified investment portfolio, you will have invested in mutual stocks, shares, bonds and property.
Even investors with mutual stocks will be safer than those with individual stocks. It is because the former would have stocks from different companies, and all of them have a different financial situation. They will be able to mitigate the losses. It is the time when diversification helps you prevent losses.
Similarly, bond investors are safer than shareholders are as they get a return at a fixed interest rate. The property market is down because of a lack of buyers, but there is no dropdown in the prices recently. Now you can understand that all investments play differently.
Making money through investments is not easy at all. The market is exceptionally volatile even under normal circumstances, let alone the pandemic COPVID19. Of course, the market will improve as COVID19 eases. Since it is not happening the first time, you should hold patience. If you are looking to investing in Ireland, make sure that you will be able to cope with the current circumstances. In case you are not able to manage your investments, you should talk to a financial advisor. They will assess your funds, investment goals before making any suggestions.