Yes, there is still the potential for an unexpected new spike in cases or a second outbreak that would further exacerbate this pandemic’s economic damage; but an impartial analysis of recent reports suggests we may have already passed the COVID-19 peak and are now on the road to recovery.
This would be extremely welcoming news, but investors must always prepare for every scenario possible and recognise that the global financial market is an unimaginably complex entity. Given this, investors would do well to stick to either one of two overarching investing philosophies when deciding how to manage their portfolios during this global pandemic.
Buy, stay or sell
When one’s financial portfolio is facing the brunt of a global catastrophe, the decision to either hope for a strong post-crisis recovery or radically restructure your portfolio must be taken as soon as possible.
Each of these methods has its drawbacks. The more conservative investors will miss out on any possible opportunities from investments in areas that may thrive under lockdown, while those eager to re-structure could see huge losses when selling under-performing assets that experience a strong resurgence in the post-pandemic market recovery.
Ultimately, your decision will mainly be based on your own levels of acceptable risk; however other factors should absolutely be considered. Fluctuations in the value of different assets are now seemingly commonplace.
Writes Giles Coghlan, Chief Currency Analyst, HYCM in the Global finance and Banking Review Newsletter.
Do read my blog regarding what warren Buffet says, he is after all the world best in Investing!
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