2020 has been a turbulent year. It caused a universal upheaval. For some people, the year passed in a breeze where the period from February to October did not yield any major event, being homebound and in hibernation. For others, though, this year has lasted an eternity with six to seven whole months of economic difficulties and business closedowns.
Pexels |Money problems are a big issue for most people in 2020
Whichever pool of people you belong to, no one can deny the factor of uncertainty plaguing the global market with a lot of fluctuations in the price of the dollar, the stock market, and the gold price. To top it off, 2020 emerged as a year of one of the most decisive elections in the history of the USA. These twelve months had all the makings of a global catastrophe.
The Rocky Trend
On February 19th, 2020, S&P 500 reached the record high, closing to see an eventual steep decline, which bottomed out on March 23rd. This drastic change in the index price owed to the closure of economies worldwide and economic pessimism setting in full force.
Once the economy started recovering, the stock market started improving. However, now is the time for a red alert since all the evaluation indicators show that the stocks are severely overvalued. This is credited to the uncertainty marking the USA elections and the FEDs keeping the interest low near zero for the past few months because of which the opportunity cost of investing in stocks remained very low, providing investors incentive to pool in for the stock trade.
Pixabay | The stock market is unstable most of the time
Tips For Survival
With all this uncertainty on the horizon, it is better to hold onto a raft and keep yourself safe. These are a few tips that can yield you health profits without eating up your profit.
Do not wait for the right time
Do not stand on the shores waiting for the high tide to take the jump and go farther. The market works on projections and hindsight. Instead of waiting for the right time which may come and go while you decide to invest, invest in interval through the dollar cost average. As you invest in intervals, you can benefit from the dips and rises in the market.
Unsplash | Fuel your savings as much as possible
And last but yet the most crucial advice for any investor is to invest for the “long term.” Only invest the funds you do not need anytime soon so that you can invest in peace, without the haste of taking out your money at inopportune times and suffering losses.