The coronavirus pandemic has made us spend more time at home. Does this preclude the search for additional sources of income? Do not necessarily! You can opt for a stock market game. However, take into account that before the outbreak of the pandemic, the stock market game based on appropriate economic analysis was burdened with relatively little risk. Today's situation is somewhat different, and some compare it to a double-sided sword. Perhaps, in addition to the desired profits, it can bring losses to novice investors.
Should you give up looking for trading opportunities on the stock market due to the economic collapse? No, because there are several industries and instruments that are particularly attractive during the crisis.
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Start by investing in yourself.
Do you need an advisor to tell you which stock market investments will be the most profitable? Well, in that case, you don't know how to invest. Start learning, but before you acquire the right competences to be able to invest money in shares of listed companies on your own, the pandemic will probably be over.
Since the restrictions interfere very much in your daily life, you may have more time for yourself. So get acquainted with valuable materials. Think about how you can explore the secrets of stock charts, how to read Japanese candlesticks, understand the basics of technical analysis and volume analysis. Also learn how to save transactions.
Even if the pandemic circumstances do not allow you to earn, the knowledge gained will bring profit in the future. If you still do not belong to the group of traders with market experience, from the article you will learn what proposals are worth considering for investments in the coming months.
What do beginners want to know?
Despite all the chaos associated with the coronavirus, some industries, despite restrictions and restrictions, can still generate profits. They used the ability to earn money under specific pandemic conditions, which significantly increased their income. The economic situation prevailing recently can be both attractive and risky. This was visible during the speculative bubbles on shares and during the outbreak of scandals on the financial market.
Stock market laymen are wondering which listed companies can survive the fight related to the outbreak of the coronavirus pandemic, and which will also allow them to benefit from it.
Regardless of the form of the crisis, investments in gold bullion have always seemed to be a good solution. The relatively stable value of the elephant attracts investors, especially at a time when the market is undergoing economic collapse.
The current condition of the economy can be assumed that the value of gold will increase. A series of market manipulations caused the lower structure of gold to be violated. It is very likely that banks on the stock exchange will trap sellers and push the price of gold even higher.
The target level could be $2,000 per ounce or even more as the upward trend continues. Perhaps it is worth waiting for the market to retreat to around $ 1700 and observe how demand and supply will behave, paying attention to clear absorptions.
Take Amazon, for example. Since the beginning of the coronavirus pandemic, its stock market value has increased by about 88% compared to its pre-crisis value. This is proof that the e-commerce industry has entered an upward phase. Of course, the biggest increases of famous companies are already behind us, but it is worth continuing to look for information about smaller companies operating in the industry. Currently, they have a unique opportunity for development.
The use of Internet services is a natural result of staying at home during restrictions. What we would have to buy in a stationary store, nowadays we often buy "at a distance". E-commerce companies achieve above-average profits in the era of pandemic reality. What's more, there are no indications that this industry is at risk, so it is worth following the related economic news and the value of stock exchange shares.
These types of forms are a perfect example of how e-commerce has increased its profits in a pandemic situation.
Currencies and indices.
The time of the coronavirus pandemic is conducive to current observations of economic news that may affect the Forex stock exchange and index markets along with ETFs. It is rather risky to invest in shares of listed companies, hence it will be safer to be interested in indices. Their price depends on the whole set of well-bodied companies. Be particularly interested in enterprises dealing with modern technology. It is she who will probably play a key role in the world after the coronavirus pandemic.
Until recently, Fiverr was a small institution offering services for freelancers. Today, its prices look like a lost opportunity to win a shuttlecock. With the outbreak of the pandemic, prices have risen aggressively. Currently, one Fiverr share is several hundred USD. Upwork is based on a similar model. Its price has more than doubled due to the pandemic. Given these two platforms, investing in these types of companies may be worth the risk.
Since the reality after the pandemic has put a significant emphasis on remote work, then companies that are a kind of employee fair are worth attention.
Although this type of investment seems to be quite risky, the demand for new medical solutions is currently very high. There is no indication that this could change anytime soon. It is worth keeping an eye on the entire segment of medical companies.
The pandemic has led to a demand not only for vaccines, but also for the search for solutions that could prevent such cases in the future.
There is also a particular tendency to pay attention to the pharmaceutical market. It may be a good idea to include companies on your watchlist that can succeed by innovating in this area.
Pay attention to the situation of Moderna a dozen or so months ago. Since the company was working on a modern vaccine, in a short time its price on the stock exchange increased from an interesting level. If you didn't manage to make money on the increases, you didn't lose much, because the medical industry now has its time. Observe the most important companies in this area.
Sanitary recommendations implemented around the world have made it worth paying attention to those companies that produce disinfectants and personal protective equipment. After all, the constant demand for such services means that the medical sector will have no problem finding itself in the post-pandemic reality.
The world in the era of the pandemic has become interested in ecology. This topic has become attractive in the circles of people who believe in the so-called conspiracy theories. However, after all, the idea of alternative energy supply sources is being pushed everywhere.
Hence, the largest companies involved in the production and processing of lithium for batteries in electric vehicles can become a good place to locate funds.
The Fourth Industrial Revolution.
The Davos Great Reset Program talks about the coming Fourth Industrial Revolution. It will place particular emphasis on technological development and ubiquitous automation. This is particularly to lead to the development of remote work. What effects will this have on average people? It seems that somewhat similar to those from the time of the pandemic, that is, staying mainly at home.
Particular attention should be paid to companies dealing with robotics, artificial intelligence and software aimed at PC and mobile devices.
Or maybe ETFs?
An ETF is a type of fund that contains various assets that affect its price value. Such a financial instrument can contain hundreds or even thousands of shares of listed companies from many economic branches. It can also focus on one of them. On the market there are, for example, ETFs of companies operating in the field of renewable energy, banking, government bonds, available in one country or internationally.
Financial instruments of this class mean that potential investors are burdened with much lower costs of concluding transactions than when buying such shares individually.
The simplified formula makes long-term investing in ETF indices seem like an attractive way to play the stock market. However, it has disadvantages such as slow capital multiplication, which for most beginners may turn out to be a misguided investment.
Do you want to gain experience in the stock market game? Are you going to prepare for serious investments in the future? Remember that minimal commitment translates into small profits,and starting long-term investing in the stock market with a small budget is rather unprofitable.
The impact of the economic system on ETFs.
The greater popularity among long-term investors means that there are many different instruments of this type. This results in low trading volume on certain ETFs. There are also concerns about the impact of ETFs on the market.
One of the general dilemmas was whether the demand associated with investments in funds would not cause the value of stock exchanges to be inflated, and this could lead to speculative bubbles. The popular opinion about the security of investing money in ETFs is based on patterns that have been tested on a very narrow range of market conditions.
This significantly reduces the stability of such instruments. ETFs played one of the important roles in the violent market crashes that arose after the 2008 economic crisis.
The most interesting ETFs.
CARZ – an automotive fund based on the world's largest automotive companies. There may be people who want to operate on a larger scale, and not intend to delve into the analysis of individual companies. They can benefit from the development of not only a specific company, but also the automotive industry.
First Trust Water, Invesco S&P Global Water Index – ETFs based on "water" companies. Since water is one of the most desirable and probably used everywhere earth resources, it can also optimize your wallet. Water companies can deal with wastewater treatment, irrigation systems, pipes and water infrastructure, as well as waste disposal, energy and water management.
What to watch out for during the pandemic?
Watch out for the crowd investing in his opinion some ups or downs. Give popular types a large reserve of distrust. Recently, there have been a lot of bubbles on shares of listed companies, cryptocurrencies or silver markets. For many investors, this was associated with considerable losses.
If you are not interested in economics and do not have any knowledge in this field, then it is better not to invest in something that you do not understand. Be sure that despite some disagreements, one stock trade won't make you financially free.