We have seen an outsized fall in equity markets around the world resulting from the pandemic, however, most market experts say that like many other crisis, this too will pass.
So you ask; what then should you as an investor this time? Should you stop investing? Should you lighten your portfolio or buy more stocks at low levels? Here are some of the things experts are saying you should do;
Consider Low-Risk Investments Only
Now is not the time to experiment with your investments. Oliver Isaacs, a block chain influencer and a writer at entrepreneur.com said “The most important aspect of anyone’s recession-time investment strategy should be playing it safe. This involves avoiding investments in companies that are highly leveraged or speculative. Concentrate on finding companies with good cash flow and low debt for the safest investment options”. You can also look into investing in real estate and dividends stocks.
Don’t Attempt To Time The Market
Investors who put their emotions in check have built more than twice as much wealth; however, fear and greed can make investors rush in and out of the market at a wrong time. Mark Hamrick, a senior economist for Bankrate said, “With stock market declining over the past several decades including the financial crisis and Great Recession, the biggest challenge for those inclined to dump stocks is determining when to get back into the market”.
History has shown us that humans cannot get that timing right, which risks huge losses. Long-term investors with the ability and perseverance to remain in the market should do just that. Always keep in mind that fleeing the market to reduce losses could mean losing out on gains when stocks recover.
Talk To Your Financial Advisor
Financial advisors are trained to guide you in re-balancing your portfolio in order to avoid concentration, manage risk and keep your investments well diversified. Therefore, if you have anxieties about what to do with your investment this period, you should reach out to him/her. If you can’t get any help, consider getting a new advisor.
This old saying comes to mind; don’t put all your eggs in one basket. Diversification is your best strategy against risk – you should invest in different types of assets and asset classes. This does not mean investing in multiple banks. It means investing in different industries, companies and maybe countries.
John Waggoner of AARP gave this good example “if you have bonds or money market mutual funds in your portfolio, they have cushioned the market’s nastiness. That is, if you had 40 percent of your money in a bank CD and 60 percent in the S&P 500, you’d be down 9.6 percent since the stock market’s high. If you’d had a balanced portfolio — 60 percent stocks and 40 percent bonds — you’d be down about 6.5 percent. Bond prices rise when interest rates fall, and the stock market’s decline has pushed down interest rates to historic lows”. Make sure you understand the risks of each of your investments; however, it is good to note that you can minimize risk by diversifying your portfolio.
In conclusion, try to avoid taking major risks at an already uncertain time; invest wisely.
The Truth About Time Management: It’s Not About Time
We’ve all heard the expression, “There aren’t enough hours in the day.” In truth, we’ve likely all said it at some point. Time management is a struggle for everybody, but especially entrepreneurs, CEOs, and founders.
Interestingly, some people seem to get more out of our 24 hours each day than others. As author Idowu Koyenikan said, the key to making the most of our hours isn’t time management—it’s life management. People who do it successfully balance the things they love with tasks they need to complete to maintain a well-rounded, satisfying life.
To-do lists or any one of the countless books on time management can help you achieve this balance, but things will eventually fall apart unless you make a habit of productivity—and stick to it. This might mean writing down your top priorities for the day or week, using a productivity app, or creating a plan that works best.
The Truth About Time Management for CEOs
When it comes to time management skills and techniques, business leaders are among the worst offenders. This typically happens because of the nature of leadership positions. These individuals are driven by the feeling that they have to do everything or have all the answers. On average, they’re also responsible for a lot: CEOs work 9.7 hours per weekday and spend 79 percent of weekend days and 70 percent of their vacation days working.
Success doesn’t come from adding countless tasks to your calendar and putting in the longest possible hours. It comes from purposeful, intentional work, which means managing your time more effectively to focus on what matters. To get there, business leaders have to reset their time-management expectations.
Only using productivity tools doesn’t lead to better time management—developing concrete time-management skills does.
How Are You Managing Your Time?
While CEOs and business leaders have countless resources at their disposal, they frequently lack time. Here are four steps to improve your time-management skills and techniques to maximize the time you do have: continue reading…
Why You Should Have A Website And Not Just Rely On Social Media
No one could have predicted just how revolutionary social media would be when MySpace started gaining followers in the early 2000s. Even in 2006, when Facebook and Twitter became widely available to the global population, there were still lingering doubts about its longevity and potential as a profit-making vehicle.
In retrospect, it makes sense: after the meteoric rise and crushing fall of the 90s dot com bubble, it was still very much open to interpretation as to whether this new wave of interactive media would be able to survive (let alone thrive) into the future.
We know differently today.
As of early 2019, there were 4.2 billion internet users, of which 3.397 billion were active on social media.
To put this even further into perspective, consider that, on average, every one of those users owns 5.54 social media accounts and spends 116 minutes a day scrolling their news-feeds or chatting with friends.
And those mind-boggling numbers are still growing. Three hundred twenty million new profiles were created between September 2017 and October 2018, which works out to 10 new social media users every second. This figure alone is almost double the average number of human births per second.
That’s right. Social media growth is outstripping the global human birth rate.
You Do Not Own Social Media
We get it. Starting a Facebook page for your small business when you don’t have much working capital seems like a much smarter option than stumping up for a website. Not only is it free, it can also put you in touch with pretty much everybody you’d like to sell to. If you’re a local-oriented biz you can make a point of highlighting your location or some other specific selling point. Continue reading…