Where to invest money during the crisis?

Where to invest money during the crisis?

In recent years, there has been much talk among financiers about the coming crisis. But the events of 2020 - border closures due to the coronavirus, quarantine in the world's leading economies, and the OPEC+ deal that went awry - have seriously fueled the fears. As a result, commodity and stock markets collapsed and currencies fell in value. The Russians are massively afraid of unemployment and lack of money.

Experts advise against panic. There are six simple tips to prevent losing savings in case of financial collapse:   

  1. Be on the money. If you have not done so before, urgently begin to save - you should have at least the level of stash of six monthly salaries. In the case of unemployment from a personal "statutory fund" paid essentials - food, utilities, communications. This allows you to survive difficult times without unnecessary stress and debts.
  2. Replenish your reserve. The stash should be replenished regularly. If you've already formed a minimum, set aside 10-15% of each paycheck in addition to it - this money should be enough to stay afloat. And if the crisis does not happen, the savings can be profitably invested (for example, in more risky and profitable instruments).
  3. Reduce spending. Modern society is called a consumer society for a reason. We do buy a lot of necessary and unnecessary things under the influence of advertising. Simple measures, such as keeping track of expenses, budgeting and shopping lists, can help you save up to a third of your monthly income.
  4. Don't take out loans. Borrowing money during a crisis is highly undesirable. Especially when it comes to foreign currency loans: if your income is ruble, then, because of the exchange rate fluctuations, you risk losing several times more than you had planned when you entered into the agreement.
  5. Refinance your loans. Refinance your loans at a lower interest rate.
  6. Invest wisely. Money can't just be kept under a pillow or on a card, it must be invested. That said, don't give in to impulses - form a strategy based on your income and with an eye to the experience of other investors. 

Generally speaking, in times of crisis it is more important to save than to surplus. So you should focus on reliability - choose investments that are guaranteed to generate income. But there is a correlation: the safer the investment, the less income you will receive from it. Take this into account when choosing between high- and low-risk instruments.

Where not to invest?

There is no unambiguous opinion on what investments you should avoid during the crisis: much depends on your strategy, income level, the severity of the economic situation. But the assets below have significant drawbacks:


  1. The problem with deposits is very low yields. If a crisis strikes, the interest rate may not cover the rate of inflation. As a result, not only will you not make money, but you will lose money.
  2. The second problem is that it's hard to choose a reliable bank during a crisis. If the bank goes bankrupt, it will not be possible to return the money from the deposit quickly.
  3. The third problem is that you will have to pay tax.
  4. The fourth problem is that banks have recently been closing foreign currency deposits.

But there are also advantages. Deposits are easy to manage: it is enough to open an account and then just receive money. 


Yes, people make money on stocks. You can buy a security at a time when quotes have fallen, then wait for it to go up. In addition to buying and selling, you get dividend income from stocks. In some companies, it is substantial (for example, in the oil and gas sector).

The disadvantage of stocks is high risks, unjustified in a situation of financial and economic crisis. To trade successfully, you need to understand how the stock market works or pay a lot of money to consultants and trust managers. But even expert support does not guarantee income: experienced investors manage to lose money, not to mention newcomers.

What to invest in during the crisis?

During the crisis, experts advise investing in protective assets. The best, if the portfolio will consist of several reliable instruments at once - so the risk of losing savings is significantly reduced. What assets are in question: 

Precious metals

First of all, we are talking about gold. This metal is in demand in times of political and economic instability, because it has a monetary function. Gold cannot be printed, which means it cannot devalue like paper money. For private investors the metal is a long-term investment. Financiers advise to invest in gold for a long period of time - from five years. It will allow you to hedge yourself and wait out any crisis.

By the way, you can invest in three other metals - silver, platinum, and palladium. But unlike gold, investments in these assets are more speculative. This is due to large price fluctuations and risks when buying and selling.


Stocks have a large potential for appreciation, but there is an opposite effect - in some periods, they can seriously depreciate in value. Investors prefer to invest at least part of their money in bonds, in order to earn on the stock market, but with less risk. The beauty of the latter is a more stable, predictable price. 

Real Estate

Buy residential and commercial real estate should be prepared for the future. Yes, during a crisis, prices per square meter drop (the market decline can reach 30%). But real estate has a huge advantage - there has always been, is and will always be a demand for it. Therefore, as the economic situation levels off, prices will climb.

The working strategy for the investor is to invest money at the peak of the crisis. While prices are not high, to finish the object for residential or commercial needs. In the future, the real estate can be resold or leased. It is good if the investor chose the location wisely - for example, near subway lines, major transport routes, or in a rapidly developing area. 

Where else can I invest in times of crisis?

You do not have to limit yourself to financial instruments. You can invest in knowledge and skills - assets that will always stay with you. And the crisis is also a good opportunity to get a different profession, learn a related field and just try something new. The profitability of such investments cannot be calculated in advance, but their resulting benefits can exceed all expectations. For example, against the backdrop of the crisis, try it:

Invest in education

You can go to university, to find good full-time or online courses. Coupled with the tuition fees will have to make an effort: read the literature, listen to lectures, do the assignments. But after studying, you become more qualified, and therefore potentially more valuable for the labor market and can find a remote job. 

Buy an Internet project

In times of crisis, even promising resources get cheaper. If such a project is at a low price, then after the crisis is over, you can make a decent profit on it - for example, to promote a service for working with clients or a site for online consultations.

Buying a site can be considered an investment in the business, but with an important caveat: at the time of launching small Internet projects are cheap, so if it fails, you will lose a minimum. And the other lines of business - trade or services to the population - usually require a large infusion. So in a crisis, do not rush to implement business ideas - for newcomers, this promises high risks.