What most people do in times of economic/ global crisis is that they sell all their shares to try and make a ‘safety net’ or provision for the worst. This is what causes a massive drop in the markets as the majority of the population rush to get their money out into ‘safe hands’.
This is precisely what we have seen with the most recent COVID-19 pandemic, which most of us are busy enduring through in lockdown. The stock markets recently took a massive dip, somewhat like the 9/11 crisis as investors started selling in a frenzy. The current situation is leading the world into a massive impending economic recession, possibly like none the world has ever witnessed.
The smart guys are the ones holding on to their stock, because they know that when things return to normal, and they will return, they are going to make massive profit as more, more, and more people again start buying into shares sold a while back.
Other smart people are buying now, even if it means selling their houses, (although that is a very bold move that may not be for everyone to take).
Why? Because they know that in a short while they are going to make huge ROI.
Even relatively logical people will tend to sell in uncertain times like these. In fact, it’s because survival mode kicks in. However, if we can ignore that little ‘red alert’ in our brains and hold on to our stock or invest right now, we will be the ones who make financial progress in the end, rather than regressing like the economy because of sentimental thinking and acting.
Here are three must-see YouTube videos for more information on progressive investing during the Corona Crisis:
Stocks to buy during recession
The Worst Economic Collapse in History
How to get rich during a recession.
– Author: Odessa Brzek (Business Enthusiast, BCom Acc.)