Investing During The Storm
It's a tough bout to invest during this pandemic, especially since the economy is two-faced and lopsided. Specifically I mean the two faces of the economy are the sky-high unemployment rates and the stock market indexes reaching all-time highs simultaneously. And the economy is lopsided in a different aspect because stocks that were previously though of to be low-volatility and safe investments are now incredibly risky and downtrodden. Whereas tech stocks have almost become a safe haven for investors. It's as if COVID took the American financial system and spun it around then dropped it on its head. What most people don't realize is that our system was fragile even before the Pandemic began, and it'll likely be either partially or completely broken once its over.
And now you're wondering, how do I invest my money or my savings to make sure I can still retire on time. Well, if you can't rely on ETFs or Index funds in the future, it's important to learn the principles of what deems an investment opportunity to be good or bad. And for someone who wants to invest in the market today, I would suggest only investments that are doing well during the pandemic and are poised to do well after the pandemic.
Perhaps in another article I'll share my thoughts on which stocks I believe are in this position, but generally these are big companies and ones that don't face much viable competition. I always say that you should be looking to invest in companies that are going to change the world, and that is no different today.
Always remember rule #1, never lose money. And keep your eyes focused on the "why?" not the "what?". The price of a stock is the least important part of investing, even within price theory and fundamental value investing. That's because it's not important what the stock price is, but rather why the stock is trading at that price.