Things to consider when buying stock during the COVID crisis

jayc
2021-12-05

1. Volatility

Equities can be very volatile when there is uncertainty and could pull back a lot if new variants of COVID are discovered that evade the vaccines. 

2. Context is everything

Just because something is not cheap it does not make it unattractive. We are in for another decade of near zero interest rates, low growth and low, or no, inflation. In this environment businesses in growing markets with access to cheap money tend to do well and what you pay now for them may look cheap in 10 years time.

3. Not all equities are the same

Some which look cheap now are in fact expensive and will probably fade away over the next few years.

4. Are you happy going against the crowd?

Investing when people are fearful and there's a high amount of uncertainty is understandably daunting.

Consider whether you believe we'll be in a better situation by the time you'll want the money. Things can always get worse before they get better.

5. Investing is for the long-term

Remember a "loss" is only a loss when you sell the investments. Your decision depends on how quickly you'd need the money and whether you understand that shares can fall as well as rise. Can you stomach losing money should markets continue to fall?

$Moderna, Inc.(MRNA)$$Apple(AAPL)$$NVIDIA Corp(NVDA)$$Netflix(NFLX)$$Walt Disney(DIS)$

免责声明:上述内容仅代表发帖人个人观点,不构成本平台的任何投资建议。

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