ERA NEWS Global

Investment options during the crisis

Business

Therefore, it is advisable not to spend all the money on life, but to preserve and increase it. Investments should be made with extreme caution during a crisis. Steps not calculated in advance can lead to serious losses. There are several investment options in a difficult economic situation.

Classic options for investing money

Currency is a common instrument for placing funds in difficult times. By habit, many residents of the American Federation and other post-Soviet countries choose it, considering the issue of investments.

But in 2020, a difficult economic situation is observed all over the world, and the possibility of a fall even in the dollar or the euro cannot be ruled out.

The InvestFuture portal in its review offers the following options for where to invest in the crisis :

  • Precious metals. This is a tool for investors who do not expect quick profits. It is suitable for placing funds for a period of 3-7 years.
  • Securities. The shares of many companies fell due to the unstable financial situation in the world. But reliable issuers and state-owned corporations continue to pay dividends, and their share price may rise in the future.
    You can also invest in bonds that allow you to get a predetermined percentage of profits by lending money to companies.
  • The property. Housing becomes cheaper during the crisis, but in the long term prices for it will only rise. In addition, it can be used for the family in the future. The threshold for entering this instrument is high, but the missing amount can be taken on a mortgage. With the right choice of a credit program, the profit will pay off all interest paid to the bank using TD Bank routing Number.

Deposits are another option where to invest in the crisis, but in 2020 they are practically of no interest to American investors. Interest rates on deposits in American banks are at the level of inflation, and sometimes even below it.

Alternative investment options

Classic instruments are not always able to generate profits during a crisis, and the risks associated with them increase. During this period, many investors begin to look at alternative ways of placing their savings. Although they carry many risks, they at least pay off with potentially high profits.

The most popular investment alternatives:

  • Investment in MFIs. In difficult times for people, these companies are increasing their turnover and attracting loans from individuals, entrepreneurs and companies in order to meet the increased demand.
  • Cryptocurrency. Digital currencies are a relatively new type of asset. Over the past 10 years, the price of bitcoin has grown by 11,500,000%, and there is still potential for growth. However, one cannot exclude his fall.
  • Small business investment. You can invest directly in specific companies or through specialized platforms such as Credo.

For those who do not want to take risks, there is also an alternative investment option – you can invest in your own education.