Investing In Times of Coronavirus

Image by Gerd Altmann from Pixabay

It’s not new. Fear over a spreading illness or outbreak has hit the stock market before – take the Middle East Respiratory Syndrome (MERS), avian flu, Ebola, and SARS. 

With that in mind, here are some ways to put your money to work in the stock market despite the looming fears of the coronavirus.

Stick to Basic-Needs Goods and Services
There won’t be a time that you won’t need detergent, toothpaste, or toilet paper – making it a good idea to stick to providers of basic need goods and services. Whether times are peachy or gloom and doom, consumers are bound to buy these supplies on a continuous basis. In fact, maybe even more now as they avoid public spaces and keeping their hygiene pristine.

Consider Dividend Stocks
When you’re looking for a long term return, companies that provide their shareholders with a dividend have consistently outperformed their non-dividend-paying counterparts by a lot over the long run. Buying into companies that pay a dividend that consistently grows their payout over time, making it almost always profitable in the long run. However, keep in mind that dividend stocks don’t always have to be high-yielding.

Taking to Targeted ETFs
If you’re an investor fearing the proliferation of the coronavirus, consider investing in exchange-traded funds (ETFs). Most brokerages allow for commission-free trades, removing a huge barrier to diversification without having a lot of cash on hand. However, buying ETFs still usually allows for a quick way to target specific sectors, industries, market caps, or trends – quickly and effectively.

Seek Financial Help

As with any investment decision, there is a risk to it. Speak to any of our financial advisors on SmartSearch to seek professional and expert help on your financial decisions. 

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Written by

Cheryl Toh

Last updated on

February 13th 2020, 4:19 pm

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