For investors all around the world, it can seem like the world is crumbling all around them in the wake of the global coronavirus pandemic. Huge swathes of the global workforce are self-isolating. They’re working remotely when they can, and placed on furlough where they can’t. Entire industries like hospitality and brick & mortar retail have essentially been put on indefinite hold, we’ve seen huge fluctuation in global markets over the past couple of weeks. Still, there is hope. Markets are stabilizing all over the world. And while we still have a great deal of uncertainty ahead of us, there are still a wealth of opportunity for the savvy and proactive investor.
No matter how much capital you have to invest or where it is presently, here are some investment tips for the savvy.
Property… it’s a no-brainer!
Property is virtually always a good investment. Cling to it and it’s usually able to weather any political or economic storm. At a time when interest rates are at an all-time low (low 3%s for 30 year mortgages and mid 2%s for 15 year mortgages), there’s great opportunity for property investors. If you’re thinking of panic selling your home or investment property, we strongly recommend waiting the crisis out. Industry analysts are broadly of the opinion that the COVID-19 outbreak isn’t likely to send the property market grinding to a halt. And the best opportunity is the one over your head right now. If you own your own home, you might want to join the legions who are refinancing their homes. If you can live with a slight hike in mortgage repayment (as well as some upfront fees), you could find yourself owning your home faster and wasting less in interest. So you get more equity instead of kicking up your hard earned money to the banks.
This is also a great opportunity for overseas property investment, with property in Asian territories like Malaysia representing outstanding opportunity for investors. Prior to the COVID-19 outbreak, Malaysia was an attractive prospect for overseas investors, representing a degree of stability and ample opportunity. With some great properties going at fantastic prices, could now be the perfect time to buy Mont Kiara condo? With properties going at below market value, there is opportunity for substantial profit margins when renting to the country’s many cash rich, asset poor professionals.
Could this be the big push that gets you to buy into crypto?
A diverse investment portfolio is a healthy investment portfolio. As such, it’s always recommended to invest outside your comfort zone every now and then. Investing small can be a great way to avoid risk until you get a feel for the market and feel confident in being a little bolder.
Prior to the coronavirus outbreak, you may not have considered investing in cryptocurrencies like Bitcoin, Ether, Stellar or Litecoin. You may even have been averse to investing in such new and relatively unproven commodities. However, the recent crash of indices is exactly the kind of fluctuation that cryptocurrencies are insulated against. One of the reasons why their proponents are so find of them is because they are not tied to the economic fates of any given nation like fiat currencies. This makes them largely recession-proof. Of course, you don’t have to go large when it comes to crypto, but it can help to round out your portfolio and create a cushion that insulates you from risk. Supplementing your stock portfolio with investment in crypto and other commodities like gold can help to add some much-needed diversity which can help you to weather the economic fallout of the COVID-19 pandemic.
While many industries are falling into decline, healthcare is booming throughout the world. And there’s still opportunity for investors to ride the comet before it becomes prohibitively high. Market analysts have identified tremendous investment opportunity, particularly in the Chinese healthcare system. Reports indicate that the recent pandemic has drastically increased awareness of health throughout this vast nation. As a result, a huge investment in both private and public health spending is expected in the coming months and years. And with it are a wide range of opportunities for the proactive investor. Now might be the perfect time to look into healthcare companies in and outside of China as opportunities for future investment. Pay particular attention to the following fields;
- Over the counter pharmaceuticals
- Home based medical devices
- Online medical consultation
- In-vitro diagnostic devices
- Medical robots
- Intensive care equipment and supplies
While these areas are experiencing a current boom, there’s reason to suspect, as people across the whole world starts to realize just how much they’ve taken their health for granted, that these fields can expect sustained growth in the future.
Bank shares all over the world are at a low. But this means that there’s opportunity to new investors in the financial services industry to catch the bottom. While the banks will inevitably have to take a hit in the current climate, the leveraging of debts such as loans and credit cards creates opportunities for significant dividends in the future. If the 2007-2008 financial crisis has taught us anything it’s that banks have a tremendous capacity for recovery. It’s looking increasingly unlikely that banks will need to be bailed out again in the post COVID-19 economy. And given that we’ll always need banks, they make for an appealing long term investment.
The take home message… Keep calm and carry on
While you’re free to make your own informed choices when it comes to future investments, we have one piece of advice. Keep calm and carry on investing. It’s looking ugly out there with markets in turmoil. However, markets (and the people behind them) are resilient. As compelling as panic can be, dumping your investments now and stuffing your cash in the mattress could lead to huge opportunity loss further down the line.
Invest prudently, invest strategically and always make informed and carefully considered choices. In the current climate, that’s really all any of us can do.