How coronavirus will affect your investment 

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Avatar for davidstam
4 years ago

China is struggling to fight the spread of the virus and adopt some positive measures. The recent changes in the global epidemic and the performance of financial markets have made us more worried about the future economy. Japan, South Korea and Italy have taken the initiative to respond to the spread of the virus Implementation of the plan, the epidemic situation in Iran is even more serious.

However, the U.S. financial market, which has been less affected by the virus this time, has recently generally fallen. Dow Jones, Nasdaq, and S & P 500 have all fallen to varying degrees. It seems to remind people not to forget the financial crisis in 2008, even gold. It also began to end the rise and began to go down, so that some people began to wonder, can gold be regarded as a safe haven?

So what are people worrying about?

Virus will further outbreak globally

Global economic pressure

That's right, based on these two concerns, media's reports of the virus epidemic began to increase, which led many investors to adopt conservative strategies. This is in line with people's psychology. In the past few years, the US stock market has soared and the global industrial chain has been restructured. Coupled with the rising global corporate debt and personal debt, people worry that the next economic crisis is coming?I believe that this epidemic will make more and more people begin to pay attention to economic issues and the performance of financial markets. For investors, more attention is still on their own money bags. This is the main content of our talk today. We will Talk about the new coronavirus from the following aspects may affect your investment income.

If you are a senior investor and have many years of investment experience, then you can focus on defensive stocks in gold, foreign exchange or stock markets, and if you are a relatively stable conservative investor, then you can focus on relative return stability Savings account and money market, for inexperienced novice investors, temporarily holding cash may be a more secure solution.

Global Stock Market

As you can see on the performance of some financial websites, we believe that if people cannot worry about the two points mentioned above, the global financial markets will not be able to resume upward in the short term, or even exist. It is possible to fall slowly. The stock depends on the development of the economy. When the economy becomes the existence that investors worry about, then the stock decline is logically inevitable.

Stock funds

Please be optimistic about the type of fund you invest in. If the fund holds too many shares, then it is clear that the return of this fund will be affected by the stock market.

Bonds and bond funds

Because people's risk aversion is rising, so the bond market price is also increasing, but we also see that bond yields are falling. Considering the downward pressure on the economy and monetary policy, bond yields are expected to fall in the future. Similarly, pay attention to your bond funds, and your returns will still be affected by the current environment.

Gold and Forex

We still have a positive attitude towards these two financial markets for a simple reason: that is to be short. Considering gold as a safe-haven asset, you don't have to doubt this hard currency, but not all investors will eventually get spot storage to hedge, like foreign exchange, it can be used as an investment tool, but not It means that you must be able to make a difference in these two markets. Before entering the market, you still need to understand them and learn relevant investment knowledge.

Real estate impact

The spread of the virus also affects the number of houses sold. If you buy real estate for investment purposes, you still need to be cautious. We have never taken a positive look at the real estate industry, even though it has been growing more or less in the past But you have to consider several factors that will affect home sales in the future. In the current environment, people are more eager for cash than in the past, and we still have to take good cash to deal with the uncertainty of the future.

At last

Information about coronaviruses is not enough to support major changes to investments, and the real problem is uncertainty. Coronavirus may seem to cause great damage, but it is also likely to disappear before reaching this point. After all, the world is actively responding to the epidemic and is working to improve the level of medical cures to speed up the process.

At present, it is best for investors to track and observe the information of the coronavirus . The investment portfolio can also be adjusted relatively. Of course, everyone's situation is different. The next step is to adopt a cautious and conservative investment attitude.

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