It’s no secret that with the Coronavirus pandemic and uncertainty in financial markets, many people are trying to protect their funds from depreciation and, if possible, to increase them. But is there anything you can invest in these hard times? You can go straight to online CFDs or figure out what investments will work for you first.
What is The Best Way to Invest Money Now?
As you know, the crisis is not only a negative phenomenon, it also brings new opportunities. Speaking about investments, this is your opportunity to receive additional income on a sharp increase or decrease in the assets of individual companies or entire industries. What industries are in demand during the crisis?
Of course, the stock exchange is one of the first options that come to mind. You can buy stocks and capitalize on their growth in price. Stock gains can vary greatly depending on the security selected to buy. For example, the shares of the Netflix company have increased by 1800% over the past 10 years.
One of the most popular areas during the Coronavirus pandemic are companies providing various online services and, first of all, online communications. Their popularity grew because, during the pandemic, a large number of people began to switch to online communication instead of face-to-face meetings. Against this background, the demand for such services has grown significantly, which positively affected the value of the companies’ shares.
Let’s take Slack messenger as an example. The shares of this company in mid-March 2020 were worth about $17, and in early June, they reached the level of $40. That is, if you’d invest $1000 in the shares of this company, then in 2.5 months, you would receive $2350.
Another type of investment is IPO. An IPO is an initial public offering of shares on an exchange. For example, when VISA held an IPO on the New York Stock Exchange, on the first day, shares were sold for $17.9 billion. Twitter raised $14.5 billion at the time of its initial public offering.
The bottom line is that at that moment, the stock is going up strongly due to the growing demand. But there is an opportunity to invest money for passive income in stocks before the IPO at the lowest price. The main advantage of such investments is that in just a few months or even days, they can help to earn a profit of 100 percent or more. Quite often on the very first day of trading, the placed shares demonstrate growth by more than a third.
Not everyone decides to buy gold, and therefore investing in real estate is a reliable and win-win option for savings increase. The choice is yours.
How to Start Investing
If you are new to this type of earning, don’t be afraid. In fact, investing only requires you to analyze the financial market and take the trends of investments into account. It is quite easy to start investing and receive income from your investments. It does not require special education or large capital. All you need to do is choose a trading platform that provides you with the appropriate options.
The most important thing to do first is to define your financial goals. In simple terms, you need to understand what do you need money for? The investment option always depends on your goals, as well as the set of investment instruments that can be used in each specific case.
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