Investment Advice During this Recession
This year, the economy has been in turmoil as the coronavirus pandemic affected the world, and it is still affecting the world as we speak (only a vaccine can help cure this virus), but a lot of countries are trying their best to stabilize the economy and as we know, the stock market is part of what makes up the economy of a country and we all saw how the stock market went from up to down within a week. Even in the midst of this, people have been waiting to get investment advices from veteran investors like Ray Dalio, Warren Buffett, and many more. So if you have been expecting to hear something from these investors, then go nowhere, just read this to the end as I will be sharing Warren Buffett’s advice to investors during a time a like this.
It is no doubt that we do not know when this pandemic will end, we do not know what to expect of the economy during and after the pandemic and we do not know when the negative trend of the market will end (as currently, the market is very volatile) but this is only a concern for short term investors, while for long term investors, there is a rule that the market always win in the long run over bond, gold, fiat and (well not sure of cryptocurrency as it is just a new form of investing) but the fact remains that the market always wins no matter the circumstance either war, or other economic problem.
It is not doubt that the stock market favor the patient investors who leave their money in the market while it often doesn’t favor traders as some will lose and some will win even though they are the market makers. After the pandemic, a lot of company shares spiked and then a lot of investors have been clamoring that the market is overvalued compared to the actual value of the company. Do not invest in an overvalued market is one advise giving by Warren Buffett.
In conclusion, you need to understand that investing can be very risky and an investor can lose all or part of their money in the process. Please consult a financial advisor before investing, do not invest based on your discretion.
In reality, the current situation, all investors do not take risks since they know as much as in the short and long term the current market is unpredictable and the digital ecosystem of cryptocurrencies is one of the best options since it is not affected by this reality.
You are right with that advice, financial inv store usually have a better knowledge about the market and it is better for us to consult them before we take bug steps towards investment.