The COVID-19 pandemic has thrown a spanner in the works for many investors with a significant drop in stock price for even the safest companies. Of course, investing can never really be completely without risk, however, during such economic turbulence it is wise to seek ways to protect your assets and invest in a way which is reflective of the current economic climate.
Of course one of the safest ways to invest your cash is in Treasury Securities and CDs which are bonds issued by the U.S government. These are essentially risk free as the United States government has never defaulted on a debt or missed a payment on a debt. However, the main risk is that you could probably have earned more from your investment elsewhere.
The way to maximise on your investments during a recession is to put your money behind the companies and products that people buy even during the worst recessions.
Even when forced to close their indoor areas, Starbucks were still driving profits through their drive through service with ques of cars often lining up around the block. This is a company with a competitive edge and international scale that is hard to beat and whilst they continue to expand and increase revenue year after year, other smaller coffee destinations are falling by the wayside.
Apple is a brand that demands loyalty from its consumers. They also know how to bring new products to the market that work in conjunction with products that consumers already own in order to enhance the experience. COVID-19 has only increased sales of the MacBook laptops as more of the population are now working from home.
Is there another company better positioned to survive the pandemic? Just Eat may be fledgling to the market, however in terms of getting timing right, they were on the button and are now a good bet for a decent share price growth.
Peter Field is a financial analyst and has written for InvestingReviews.co.uk covering topics from pensions, savings, investments and ISAs. His knowledge of the Investment market has proven invaluable, making his unbiased views and opinions open and honest for everyone. In 2021 Peter retired and is working towards enjoying more of the outdoors with his beloved labrador Millie.