Should We Still Be Making Investments in 2020? – ValueWalk Premium
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Should We Still Be Making Investments in 2020?

As a direct result of the coronavirus outbreak, we’ve seen businesses across the world go to the wall, big corporations fall into administration, and stock prices plummet. On a surface level, 2020 appears to be the worst time for anyone to be making investments. With a recession on the horizon, we should be keeping our money safe and close by, right? Wrong.

Q2 2020 hedge fund letters, conferences and more

In fact, now might be an opportune time to invest in stocks, shares and bonds. If you’re on the side of disbelief, we’re going to persuade you otherwise with this article. Here are all the reasons why we should still be investing our money elsewhere in 2020.

Growth

1.) Capitalise on Change

Coronavirus has changed the way everyone is living. This has resulted in many industries, such as tourism and retail, suffering, while other industries, including tech and healthcare, are prospering. It seems 2020 is the time for investors to turn their attention to manufacturers who specialise in creating face masks, or science laboratories working to create radical healthcare solutions such as the coronavirus vaccine, as these are in incredibly high demand.

Though it sounds a little cynical, you could profit significantly by getting a share in these companies. This being said, you could use 2020 to further your philanthropic ventures. That’s what the Tej Kohli Foundation has done by pouring capital into innovative tech solutions for global healthcare.

2.) Kickstarting the Economy

We’re all fearful of a recession, so we’re not spending our money in preparation for it. However, this is actually the worst thing you could possibly do. If we fail to support our local economy, then businesses will be more likely to go under than they already are. In turn, people will lose their jobs, and therefore have no money to funnel back into the economy. From here, the economic impacts start snowballing and we’re propelled into a deep financial depression.

However, by continuing to spend your money, you’re supporting businesses and cushioning them from the impact of a recession. The same applies to investments. Without capital from investors, companies are more likely to collapse, which will eventually lead you to be out of pocket, too.

3.) Profit from Share Prices

The golden rule of investing is to buy low and sell high. That’s exactly what investors can do now that coronavirus has caused companies everywhere to lower their share prices. Even massive corporations have done this, so they can use investors’ funding to keep themselves afloat during these trying times. For the same reasons, now is also a good time to top up your current holdings in companies which are burgeoning because of the pandemic.

4.) Expect the Unexpected

We’re starting to return to normality and people have been deprived of certain luxuries, making them want them more. For example, we might see an increase in demand for flights next year because so many people missed their holidays in 2020. Smart investors should start making their predictions and buy shares in anticipation of this.

These are the main reasons why people should keep investing their money in 2020. There’s still life left in the economy yet.


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