I can remember watching an interview with David A Walsh Bronxville producer, and he was discussing the perfect time for investment and the conditions which are ripe for investors. This was all about a month before the CoVid pandemic hit hard and just like that the perfect opportunity presented itself. Those savvy people like David would have been the ones to have the foresight to invest in Netflix or Dominos stocks, and pull themselves out of the likes of tourism and leisure companies. There is very much a temptation at the moment to jump in to investing right now, having seen how much money others have made of late, and whilst markets are unstable it could certainly be a great time to get involved, and here are some tips on doing so.
Company Stability
A company which normally does well but which has a stock price which has bombed is certainly an attractive proposition, before investing however you really need to know more about the general status of the business and its finances. A perfect example would be an airline, let’s say that back in April you saw the stock price of Avianca plummet, and fancied an investment because you knew that this monster airline would be back on its feet after the pandemic is over. Despite the fact that it was a national airline, Avianca was unable to survive and it was a victim of the lockdown, and everyone who invested lost their money. This is why it is essential to check the company’s stability before you invest.
Planning
Something which so many investors do which is often a mistake is not really having an idea of why they are investing their money. This may sound simplistic but you have to have a plan of attack when you are investing, in order to know what to invest in and when to get out. We all know that investing is is about making money but when and how much are two very important questions to ask. Some people want to get in, make small profits and get out, others may be looking more towards the long term, this is a key decision which you have to make, once you have then your investment choices will be easier.
Your Future
We know that around the world the restrictions around lockdown are beginning to ease up, but that is not to say that things may not go backwards again. With this in mind it is important that you are prudent with your investments and more importantly your financial planning. If you are able to be smart with your money then you can invest with confidence, if however you have a finite amount of capital and uncertainty ahead, investing now, or at least investing a lot, will not be the greatest of ideas. Bear all of this in mind before you take the plunge and begin to invest in companies.
