WHERE TO INVEST DURING THE CORONAVIRUS EPIDEMIC?

The market falls and panic, caused by the coronavirus may turn out to be a good time for risky investors. In a situation, where stock exchanges react negatively to the panic of stakeholders, and the bankruptcy of many companies has become a close prospect, experts still find reason for optimism.

Acquiring stocks of large companies at a lower price is a well-known way to get rich during a crisis. To do this, you need to evaluate the moment when prices fall as much as possible in time, but it is necessary to remember that there are risks of investing in a potential bankrupt. What companies and market sectors can be attractive for investments and subsequently bring tangible profits in this situation?

Experts call for caution and recommend not hope that the state regulators would be able to solve the crisis problem. Even by launching a printing press, the state will not be able to increase the volume of liquidity. The only hope for investors and brokers is a victory on the medical front, promising the invention of a vaccine against the virus. And since it is not worth waiting for victory in the short term, investments must be made on the basis of the long-term plans.

Despite the insidious markets that can leave “without a stake and without a yard”, the risk is worth it. For example, it is worth focusing on pharmaceutical stocks. The stocks of leading brands, developing the vaccine against the virus, can multiply in price among those who are the first to be able to bring their life-saving product to the world market. It could be “Teva”, “Gilead”, “Johnson & Johnson”, “Pfizer”, “Sanofi” or some other company, but which of the well-known corporations will stop the epidemic and calm the markets, no one has been able to answer. So, the risk of investing in the wrong company certainly remains.

An oil market might be an attractive sector for investment. Considering the fact that the shares of large companies such as “Chevron” or “Exxon Mobil” went down, while the corporations themselves are confidently “on their feet,” long-term investments in them can be very attractive. Moreover, the dividends, paid to the shareholders, are relatively high (5.5% and 7.0%). It is reasonable that after the companies in the oil market, oil refiners could become potential targets for bank investors as well.

We should not forget about those areas of the market that have traditionally become a safe sector for conservative investors. First of all, in such situations we may recall telecommunication corporations, such as the American “AT&T”, whose enterprises, although they have debts, are quite stable. Entertainment and streaming can also be very revealing in terms of finance, as well as the IT sector. It’s only worth investing in them carefully and without unnecessary emotions, tuning in for a long relationship, as the epidemic continues to spread out.