(Newswire.net — May 12, 2020) — For any investor, 2020 has not been the best year for investors. In fact, due to the Coronavirus, any FTSE investor’s portfolio will have dropped by 31% compared to last month. Almost every global economy has been hit massively by the outbreak of COVID-19.
When looking at the stock market from this perspective, it may suggest that investing in stocks, trading dividends or online cfd trading during the middle of a pandemic might not be the best idea. It also might make investors tempted to sell their investments and cut their losses now.
However, it would be completely unwise to sell any investments you have already purchased. If you hold your nerve, your investment is likely to pay off, as the UK markets have bounced back from every sell-off within five years.
Although the COVID-19 pandemic is likely to disrupt stock markets further, this doesn’t mean you shouldn’t invest right now. In fact, due to stock prices taking a sharp hit, it is actually a great time to invest.
Buy low, sell high
Although we are living in uncertain times, it is incredibly likely that stock markets will bounce back over time. Therefore, if you buy shares at a time where the prices are low, you are likely to make a profit when the stock market begins to recover.
However, it is important that you don’t just invest your hard-earned money in just any company. Although stock prices are predicted to rise once the Coronavirus pandemic is over, there is no telling how long this will take, and many companies that have had to close as a result of the pandemic may never be able to recover. Before you invest in any shares, make sure you research and pick shares that are quality, and are likely to survive the repercussions of this virus.
If you do your research, and pick the right stocks, investing right now could be the best decision of your life.
Conclusion
Whether you are investing in stocks, trading in dividends or CFD trading, there will always be a risk, especially in this time of crisis. However, by researching and choosing stocks smartly, investing now could be incredibly rewarding.