Have you’ve been eying off all the commercial real estate for sale since the pandemic hit and wishing you had the funds to make a move? If so, you’ll be pleased to learn that there are investment options available that don’t require a huge amount of up-front capital.
The five options listed below have become particularly good choices thanks to the COVID-19 crisis. Group them together into a diversified investment portfolio, and you’ll be in a good position to ride out all the uncertainty produced by Coronavirus.
1. A high-interest savings account
This isn’t the most exciting investment opportunity, but it is an essential one. You need to have some liquidity to tide you over in case of unforeseen circumstances. For this reason, it’s essential to start your investment portfolio with a simple high-interest savings account to hold your emergency cash reserves.
This money will ensure you don’t need to tap into your more lucrative investments if times get tough. So, consider any interest you earn on it a happy bonus. If you already have such an account, it’s worth reviewing the market every six months to ensure you’re still getting the best interest rate.
2. Precious metals
The beauty of investing in minerals like gold and silver is that, when the market crashes, they tend to either hold or increase in value. This makes precious metal investment a great way to balance your portfolio and protect yourself from market instability. A good figure to aim for is about 10% of your net worth. You can have this stored with a reputable company or even keep it in a safe at home.
3. Firearm stocks
This one may seem a bit grim, but there’s no denying the fact that crises inspire Americans to stock up on guns and ammunition. When the pandemic reached US shores, we saw more than just a rise in toilet paper sales. Guns and ammo had a massive spike in the first quarter of 2020, and sales have remained high since then. So, if you’re a firearm enthusiast, now might be the time to buy up some blue-chip equities in this industry.
4. Bargain hunting
Many companies in the travel and hospitality sectors took a massive nosedive when the pandemic kicked off. Though some of them won’t survive, those that will offer an incredible opportunity to savvy investors who are willing to take a risk. Buy up stocks from airlines and travel booking companies you believe will survive, and in time, your investment will skyrocket.
Of course, there’s always the risk that they won’t make it through the tough times that lie between now and when the world opens back up again. However, this is all part and parcel of investing. You can mitigate this risk to a certain extent with research, but there will always be unknown factors at play.
5. Safe stocks
To balance out your riskier moves, it’s worth investing in companies that are on a comfortable upwards trajectory and that have been powering through the pandemic. Amazon, Apple, Google, and other tech giants are all worthy choices.
Barring a robot uprising, nuclear war, or meteor strike, it seems the advancement of technology is unstoppable, so these companies are about as close as you can get to a no-fail investment option.
Follow the tips above and create a diversified investment portfolio that covers all your bases. Risky moves are fun to make, but they’re even more enjoyable if you know they’re complemented by safe investments and a healthy emergency fund.
Alex is fascinated with “understanding” people. It’s actually what drives everything he does. He believes in a thoughtful exploration of how you shape your thoughts, experience of the world.