A lot of news about the COVID-19 pandemic and its toll on the financial markets has been pretty bleak. Even more so, Americans trying to invest and prepare for their future look for answers on how to preserve their hard-earned savings and minimize losses in their portfolios. There is no simple answer to dealing with this current problem, but certain principles of investing still apply and there may be other ways to boost your portfolio including investing in alternative assets like gold.
You Need To Ride Out The Stock Market Volatility
There is no question there’s been a lot of market volatility and stocks taking a hit as the impact of COVID-19 started spreading. Unfortunately, some of the panic selling has led people to believe everything should be sold off and any holdings you have recovered in cash. But if past history has taught investors anything, it’s that holding on to investments or taking advantage of low prices to get into the market is ideal at these times. You should definitely evaluate any individual stock or mutual fund shares you currently hold and make sure the financials look good for the company to weather this storm. But the smartest thing you can do right now is likely to stay in the market and ride this out.
You May Want To Avoid The Bond Market
While the stock market is still a place to invest, the bond market looks a little weak right now. Consumer confidence is not high right now, and most bondholders are trying to sell off to recover any losses the pandemic may have inflicted upon them. It’s taken actions by the Fed to try and stabilize the bond market, and while these may have put some liquidity back into the economy, investors don’t seem to be ready to get back in it just yet. There’s also concern about how the Fed’s actions here along with printing money may lead to inflation.
You Should Consider Alternatives
While COVID-19 may be causing the main markets to tank, there are other markets you could invest in. One is the precious metals market where physical gold and silver are in high value. Gold may be one of the more unappreciated investments for this pandemic because it’s something you can hold or sell and see returns on in a stable market. And you can even invest in it through an IRA as the experts at Goldco mention that, “Anyone can open an individual retirement account and leverage the same tax benefits that traditional retirement accounts offer.” You just need to follow the proper steps of opening a self-directed gold IRA so you can invest within the IRS guidelines and have your investment protected.
In conclusion, the traditional investment markets are very shaky right now, but there is still optimism for those who stay in them for now. But diversifying your portfolio and including physical gold in it is one way to build on your savings and have an asset that can make gains when inflation devalues regular currency. You don’t need to go all in on gold, but consider allocating a portion of your portfolio to it.