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:
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.
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:
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.
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:
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.
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.
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:
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.
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.