Investing in a Pandemic

The present state of the world may not necessarily appear opportunistic in terms of finances.  The Covid-19 pandemic, as well as social and political instability, have taken a serious toll on both the economy and personal finances. In my opinion, it is more important than ever to make smart financial decisions to account for the uncertain future. I believe it is especially important that young people start making these kinds of decisions in order to best set themselves up for success later in life. 

There are myriad reasons to start investing in your 20s. My parents taught me from a young age how to be careful with my money. As I got older, they taught me about the stock market and its many advantages and risks. The stock market can be tricky, and even a little intimidating, but young people have a unique advantage. By starting early, you have many years to study the markets and refine your investment strategies. This could lead to significant payoffs in the future.

person holding $100 Dollar bills Photo by Alexander Mils from Pexels Although the worldwide pandemic has shaken up financial markets, I don’t think it should cause younger generations to shy away from investing opportunities. In fact, I think this situation could offer numerous benefits if you know where to look. For example, cryptocurrencies have been doing surprisingly well during this pandemic, specifically bitcoin. While cryptocurrencies can be highly volatile, bitcoin has consistently outperformed the market since last spring. I have found that there are a few opportunities, such as cryptocurrency, that have the potential to perform well despite the difficult state of the world.

Another promising area to look into is the technology market. This positive trend makes sense due to the world’s dramatically increased need to make everyday activities, such as work, school, shopping, and social events, more accessible from home. Stocks, such as Zoom and Slack have been doing incredibly well this year due to universities and jobs alike moving to remote operations. The technology industry has definitely been under pressure since the Covid-19 outbreak to innovate in order to alleviate the negative effects of quarantine. This increasing reliance on technology provides the public with lots of financial opportunities for investing. 

Investing in the stock market does not have to be intimidating or scary. Although there are always risks, starting early can give you the tools and experience you need to build a successful portfolio. As a college student, I know I worry about my future while I strive to be financially independent after graduation. That’s why, even in the midst of a chaotic and destructive year, I think young people should start to educate themselves about the stock market and investment opportunities. If 2020 has shown us anything, it is that life is wild, unpredictable, and best to be prepared for all outcomes!