Today’s post will explore the ways to invest during the COVID-19 crisis. The Dow Jones is currently up +1,985.00 points. If you find this informative, please share it with someone else.
Don’t Panic Sell
When you look at the charts from March 14th, 2019 to February 12th, 2020, the Dow Jones went from 25,709 to 29,55.42. That is +14.94%. In this past month, the Dow Jones has dropped 27.88%. Pretty scary if you just look at the sudden drop, which is why a panic sell is going on. Now let’s look at the data from 1 year to right now. If you were to take a look at the chart, you would see that the Dow Jones has dropped only 17.54%.
Other articles will only talk about the sudden drop and make everyone panic because they aren’t looking at the data themselves. So whatever you do, don’t start selling everything you got for a loss. The stock market will always make a turnaround and you will regain that money.
Side Note: The phenomenon that is taking place is called social proof. This is when people imitate the actions of others. How did this come to be? The articles that you see trending are invoking fear and showing you the stock market is dropping, which in turn has people to believe that they need to panic sell because others are doing it without analyzing the problem themselves.
Start Investing Now!
What you need to be doing is start putting more money into your investments. If everything is dropping in price then you would think it makes the best time to get a quote “sale”. I mean if you lost money from this crisis, invest some money now, watch it go up, then long term you will regain the money that was lost and make more when you bought low.
The best way to go about investing right now is by doing it in increments and diversifying your money. This simply means putting a little bit of money everywhere then just putting all into Apple stock. For beginners, using stock platforms that have fractional shares is really good because you don’t have to actually buy the whole stock. If you want an app to invests the money for you then go with Acorns. Of course, use Robinhood if you have the money to buy full shares and know how to make a diverse portfolio.
The main message is to keep investing like you usually do and put more money in if you can.
Please send this to a friend that is freaking out about the stock market and needs a quick guide on why they don’t need to. The world is not going to end nor will the stock market completely collapse.
Thanks for supporting The Finance Starter and read other post below:
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Also, make sure that you are getting accurate information about COVID-19 and understanding what’s going on in the world