Tips for Investing in the Stock Market during the Coronavirus Pandemic

Tips for Investing in the Stock Market during the Coronavirus Pandemic


Now that we’re in the heart of coronavirus pandemic, you might be wondering how to avoid further losses. While no one investment technique will protect you during this time of volatility, these following tips can help earn more reliable returns on investment in the new bear market.

Tip #1 – Do Nothing

This may feel counter-intuitive at first. Doing nothing and watching your stock portfolio valuations go up and down at times may be hard to watch. But as past recessions both large and small have taught the experts, selling off a majority of your portfolio at a time like this means you’ll never get a chance to recuperate those losses down the line.

Simply put, dumping Italian or Chinese investments at this time means that you won’t be able to benefit when those countries’ economies rebound in the future. Similarly, if you jump ship and move your investments to gold, for example, you’ll find your assets sunk into an investment that pays few dividends during a growing economy. If you do nothing, you’ll at least know that you still have worthwhile stocks in hand when the economy rebounds.

Tip #2 – Set an Entry and Exit Time

You’ll need at least some plan for timing the market when it is volatile. To do that, you should avoid playing the guessing game. You can prove that old investing adage true – “time in the market is better than timing the market.”

Tip #3 – Don’t Let Volatility into your Head

If you’re feeling the effects of the recent market crash don't let the trend emotionally drag you down. Not only is that bad for your mental health, but it will also harm your ability to invest rationally later on.

The Bottom Line

Regardless of how you choose to do it, be sure to keep your long-term investment goals in mind. Over-reacting during a market crisis like this can put those goals in jeopardy fast. Instead, keep a good head on your shoulders and try to make the best of this difficult time.

*This content is developed from sources believed to be providing accurate information. The information provided is not written or intended as tax or legal advice and may not be relied on for purposes of avoiding any Federal tax penalties. Individuals are encouraged to seek advice from their own tax or legal counsel. Individuals involved in the estate planning process should work with an estate planning team, including their own personal legal or tax counsel. Neither the information presented nor any opinion expressed constitutes a representation by us of a specific investment or the purchase or sale of any securities. Asset allocation and diversification do not ensure a profit or protect against loss in declining markets. This material was developed and produced by Advisor Websites to provide information on a topic that may be of interest. Copyright 2014-2020 Advisor Websites.

TD Ameritrade, Inc. is one of the firms that we use to custody our client assets. TD Ameritrade, Clear Creek Financial Management, and the other entities named are separate and unaffiliated firms, and are not responsible for each other’s services or policies. TD Ameritrade does not endorse or recommend any advisor and the use of the TD Ameritrade logo does not represent the endorsement or recommendation of any advisor. Brokerage services provided by TD Ameritrade Institutional, Division of TD Ameritrade, Inc., member FINRA/SIPC. TD Ameritrade is a trademark jointly owned by TD Ameritrade IP Company, Inc. and The Toronto-Dominion Bank. Used with permission.

Clear Creek Financial Management, LLC is a Registered Investment Advisor. Advisory services are only offered to clients or prospective clients where Clear Creek Financial Management, LLC and its representatives are properly licensed or exempt from licensure. This website is solely for informational purposes. Past performance is no guarantee of future returns. Investing involves risk and possible loss of principal capital. No advice may be rendered by Clear Creek Financial Management, LLC unless a client service agreement is in place.

Website Design For Financial Services Professionals | Copyright 2020 All rights reserved