Coronavirus and investments: where to invest in the crisis?

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Coronavirus and investments: where to invest in the crisis?

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Many believe that the year 2021 is not conducive – or even stimulating – to economic development. Since January, the world has lived with alarming news about threats in aggressive tones, between countries, and the echoes of a potential economic recession that will reach everyone.

Until the arrival of the coronavirus, which also spread to all continents and put even more in doubt the mind of those who want to value their heritage. After all, where to invest in the crisis?

Know, in advance, that it is possible to join and strengthen your performance in the financial market, even in times of pandemic, and in an assertive way. To learn more about it and learn to take the first steps on where to invest in the crisis, read on with this post in which we will discuss:

What are the impacts caused by COVID-19?
What tips to undertake to know where to invest in the crisis?

  • Fixed income investments;
  • actions;
  • real estate market.

How to invest in the crisis with less unforeseen circumstances?

  • Create an emergency reserve;
  • evaluate the types of investments well;
  • start in your time.

Good reading!

What are the impacts caused by COVID-19?

First, measures of social isolation imposed in many countries value people’s health, above all, with the intention of stopping the spread of the virus and causing a collapse in the health system.

It turns out that society as we witnessed until the beginning of 2021 has ceased to be as it was, and has shown that many other side effects will accumulate due to the pandemic. Among them, unemployment and an economic crisis that already leaves marks both in the present and for the future.

Precisely because of this scenario that is not optimistic and with so many uncertainties on the horizon, we must learn where to invest in the crisis. As much as the income is shorter (or nonexistent) in that period, the financial planning becomes elementary to guarantee at least some stability for the fulfillment of your accounts and also for the medium and long term objectives.

Before moving on to investment tips, however, it’s worth learning a little more about the balance of your monthly income and your expenses. To understand more about the subject, leave it for later to read another post from us, but with fundamental home economics tips to reduce spending on your home!

What tips to undertake to know where to invest in the crisis?

Unlike the 2008 crisis, which affected the global economy, the present moment preaches for the intelligence in consumption and in the valorization of its resources. For we have a common enemy in addition to financial difficulties.

For this reason, it is advisable to learn about certain investment areas, which will help to solidify the income you have saved or, even, that you want to start saving as soon as possible.

See below for our tips on the subject!

Fixed income investments

In general, fixed income investments they are those that have good profitability, flexibility of choice for their investor profile and have good resources of guarantees and shielding against risks.

You may have heard of some of these fixed income investments, such as:

The first, which is one of most popular investment modalities in the country, does not have good profitability – inflation is even higher, which reduces the attractiveness of savings. However, the other modalities mentioned tend to yield a better appreciation and also with more affordable rates of investment management.

In addition, an interesting point for most fixed income investments: if you have long-term goals, the tax rate to be paid reduces proportionally to the time that your investment remains invested in your favorite option.

To learn more about each of these types of investments, take the time to click on the links selected above. In this way, you can more accurately assess what they have in common and what most brings them closer to your investor profile.

Actions

An important asset in the financial market, the stock sector tends to be maintained through a stockbroker, which adds more accessibility, nowadays, so that more people learn where to invest in the crisis – and also after it.

It is worth noting, however, that the actions involve more risks and also more notions of what is happening in the market, avoiding losses and losses of which you have no interest in bearing.

A good way to get started in this sector is through the tips and care we have selected, below, for you to understand more about the stock market:

  • when investing in the shares of other companies, start with those that are more solid and resistant to the most current crises;
  • also analyze the future prospects for these companies;
  • when looking for a stockbroker, analyze its history, as well as the respective rates practiced;
  • start with smaller investments to understand how the financial market works, first, and then adjust strategies according to your needs and goals.

Remember that it is essential to choose institutions and companies that practice more accessible charges, but whose reputation is equally positive. Knowing where to invest in the crisis, after all, also goes through a stage of in-depth research to assertively invest your resources.

Real estate market

The real estate market also remains effervescent – even with the coronavirus still active in the country. In part, because the consumer has attractions to invest and adapt to the installments in the medium and long term, but also because the sector itself was in a constant development after the retraction of the last years.

Just pay attention to your goals. If your idea is to use the property for rent later, a series of costs will be part of your routine until you are able to put it on the market for potential tenants to visit. Between them:

  • IPTU;
  • condominium;
  • maintenance.

For the valuation of the property, however, it is essential that you observe the best developments with evident cost / benefit. This means a modern architectural project and an area in constant valorization and growth. Take into account, too, that the country’s economic situation may worsen in the coming months, and the pandemic may put its plans in jeopardy.

Investing in real estate, therefore, may even be a good idea as long as you have an immune plan to various types of unforeseen events.

How to invest in the crisis with less unforeseen circumstances?

Now that we have seen the best investment models in the crisis, it is important to know how to take the first steps within this context, in order to avoid losses, losses and less assertive decisions.

With that, you already make your first investment with the certainty that your income will follow the forecast, and your financial goals will be continuously respected and achieved.

See, then, our tips on the subject now that you already know where to invest in the crisis!

Create an emergency reserve

THE emergency reserve is a very simple financial planning to carry out. Start by balancing your expenses and income, and dedicate a little of these resources to the reserve.

With it, you will only be directed towards the payment of emergencies – medical expenses, for example, or even high and unforeseen costs, such as the maintenance of the vehicle – and situations in which it is preferable to activate the reservation than to bear the costly modalities of loans from the market.

Experts point out, however, that is important accumulate an approximate value between 3 and 6 months of your expenses. Let’s say, for example, that you and your family can balance costs at R $ 3,000 a month. Your 6-month financial reserve, therefore, should be around R $ 18,000.

Don’t worry about how long it will take to build your reservation. Keeping month after month and in some of the applications that we pointed out in the previous topic on where to invest in the crisis, this money will accumulate, yield and value in the same proportion.

Evaluate the types of investments well

Do not blindly follow what someone else has done to invest in the market. After all, the reality, interests and challenges faced by it can be completely different from yours.

Therefore, when learning where to invest in the crisis, create a fully customized plan. The stock market may not be the best option for you if you do not want (or can) take the risk of losing part of your investment. Just as higher profitability tends to be associated with riskier options.

Thus, you should consult with brokerage firms that can assist in this process and point out the best alternatives within everything that makes up your investor profile.

In the case of investments, we have already mentioned the necessary precautions, but regarding brokers and institutions, other points of attention should be noted:

  • look on social networks and websites specialized in consumer complaints for the reputation of these companies;
  • don’t settle for the first option. Do a lot of research on the internet and compare the rates, values ​​and also the income of your finances that each company will design for you;
  • remember to prioritize your interests and difficulties as well. Do not be seduced by higher and riskier earnings, if you have no financial margin to assume the consequences of a loss.

As we have pointed out, many fixed income investments offer several guarantees for your income to be stable and predictable – which shows the final value of your investment after a certain period that your resources remain allocated.

Start in your time

Do not take advantage of stock settlements to invest heavily. The present moment, as we said, is one of many uncertainties. This does not diminish the importance of knowing where to invest in the crisis, nor of delaying that plan. The time to invest is now, no doubt, but take into account all factors.

Hence, the importance of calculating your planning so that the positives and challenges are properly marked. With reliable data and full certainty of what your goals are, you invest assertively and there is no need to panic about the sector’s uncertainties.

In other words: the your financial freedom you can start today. It is enough to know, as we have seen, where to invest in the crisis.

We hope that our tips have helped you to better understand where to start your saving project for the future (in the short, medium and long term) and, if you have any other questions on the subject, here is our invitation: subscribe to the newsletter HR Consultant UK – just fill in your details in the right corner of the our blog – to receive all our tips and news directly in your email!

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