Take Advantage of This Rare Opportunity in the Market
May 3, 2022
When life gives us lemons, or a massive global pandemic, we must make lemonade (or take a look at the stock market). Tons of people have decided to just sit back and wait it out, but now is the perfect time to take advantage of stock market buying opportunities. And while we should nurture all five of our cores, this week we’re going to focus on career & finances.
The old ways of considering the stock market buying opportunities are not going to work right now. We’re at a rare moment in time. In the 1700s, Baron Rothschild said “the time to buy is when there’s blood in the streets.” That time is rarely as obvious as it is now.
There was Black Monday in 1987, the tech bubble burst in 2000, the collapse of 2008, and of course the Great Depression in 1929. Now we’re in the Covid crash of 2020, its distinction being that it’s the fastest the market has fallen in history. People are letting their panic and desperation dictate their trade.
People fear the unknown, and nothing has been more uncertain than this pandemic. I do know something, though: we will eventually recover, and in the meantime, we can benefit from this crash. It’s important that we use this as a stock market buying opportunity.
Certain stocks and sectors have been more durable than others, and the winners and losers of the initial panic are starting to emerge and take advantage of stock market buying opportunities. They’ll be the ones thriving even after the pandemic is over.
The adaptation to an at-home lifestyle has been a huge adjustment for many, but we continue on. We form new habits and create new routines. And with that comes new innovation and realizations of what we were missing.
Commuting, for one thing, took much time out of many people’s days. Now we can hop on that virtual meeting from our desk at home, minutes after we brush our teeth and pull on a decent shirt. Many people became more productive because they weren’t distracted by coworkers stopping to chat or staring at the clock until they could go home. And for the companies, there is a massive save in office space and utility bills.
Still, some companies haven’t recognized the win-win for what it is because they don’t want to adapt; they want to stick to their old ways. They don’t recognize that Covid has allowed us to create a new perspective and shake things up to build some momentum.
Some companies have adapted, and they are thriving. Tools such as Slack, Zoom, and Cisco Webex are emerging as the winners of the new normal. And I’ve put together a list of stocks and sectors that may also come out as winners later. Many of these stock market buying opportunities have been sold off in the panic of the first month of the pandemic, and it’s not too late to take advantage of them.
So, yes, the pandemic has been rough on us. But that doesn’t mean we can’t take some good out of it. We have a stock market buying opportunity to be a part of the winners of this predicament and we can come out thriving in the end. Start cost dollar averaging now and you’ll be able to climb over the hill when we start seeing the end of the pandemic coming nearer.
I recommend listening to this podcast Investing in the Future with Jen Du Plessis
Investing Lessons From The Pandemic
The outbreak of the coronavirus pandemic has been a rude awakening for many investors.
For years, we have been told that we need to diversify our portfolios and not put all our eggs in one basket. But when the pandemic hit, it became painfully clear that even a diversified portfolio is not immune to market shocks.
So, what can we learn from this experience? Here are some key investing lessons from the pandemic to get to new levels of success:
1. Diversification is not enough.
Diversification is still important, but it is not enough on its own. We need to be diversified across asset classes, geographies, and timeframes.
2. Be prepared for market shocks.
No one could have predicted the pandemic, but that doesn’t mean we should be surprised when market shocks happen. We need to be prepared mentally and emotionally for when the markets go through tough times.
3. Don’t panic.
It is easy to panic when the markets are in turmoil, but this is usually the worst thing you can do. Selling in a panic will only lock in your losses.
4. Have a plan.
A well-thought-out investment plan will help you stay focused and disciplined when the markets are volatile. Review your plans regularly and make sure they are still relevant.
5. Be patient.
The markets will eventually recover from the pandemic, but it could take some time. Don’t try to time the market – stay invested and be patient.
If you can keep these lessons in mind, you will be better prepared for the next market shock – pandemic or not.
I recommend listening to this podcast Gamifying Investing | Stock Market Tips | Be Patient and Don't Follow the Herd
This week’s tip:
As I mentioned before, I’ve put together a list of stocks and sectors to consider. Look over it and pick something to buy a small amount of, something that stands out to you or will definitely come out as a winner. Once you’ve started, you’ll start to get the hang of it and take bigger buys.
If you need help, there are several resources to get you started. Try one of these apps:
iBillionaire (simplest ETF and sector picking).
To boost your action, set up weekly deposits from your checking account. Even twenty dollars a week will add up over the years and benefit you in the long run.
Want to know where you stand in the five values of life tied to happiness (your five cores)? Take this two-minute Core Values Quiz to get your core score in the five values of life.