With the market volatility currently gripping investors worldwide, it’s hard to know what to make of the financial landscape. Since the beginning of the coronavirus pandemic, stock markets have plummeted, and many investors are preparing for the worst, with some writing off the stock market altogether.
However, despite the doom and gloom outlook held by many, this is not the time to turn your back on stocks and bonds. The markets may be in a temporary slump, but this does not mean that stocks and bonds are ‘out of the picture’ forever. In fact, while there is no guarantee of success, there are ways to take advantage of the market that will probably pay off in the end.
For starters, now is a great time to buy stocks and bonds when prices are low. As the old adage goes: ‘buy low and sell high’. This is the time to buy, as stocks and bonds will likely bounce back once the economy begins to recover from the COVID-19 pandemic. In fact, many investors are taking the opportunity to invest in companies that are likely to benefit from the pandemic, such as online retailers, food delivery services and pharmaceutical companies.
Furthermore, rather than panicking and selling off all of their investments, investors should be looking for opportunities within the existing market. Many stocks and bonds are undervalued, meaning that now is a great time to purchase them at bargain prices.
Finally, even when the markets do eventually rise again, bear markets are inevitable and can provide an opportunity for investors to ‘buy the dips’. In times of market turmoil, prices drop and stocks can become great buy opportunities.
Overall, while stocks and bonds may not be doing well right now, it does not mean that they are doomed forever. Rather than panicking, investors should be taking advantage of the current market situation and looking for opportunities to buy low and sell high. With the right strategies in place and a bit of patience, the markets will eventually stabilise and investors will be rewarded in the end.