The stock market is crashing as the Coronavirus panic continues to spread.
The U.S. stock market is suffering its worst crash since 1987. Last week there was an automatic shutdown in trading.
It's fair to say that the world's financial markets are panicking and the economy is in trouble.
As of right now, the Coronavirus has been labeled a global pandemic. This means that the disease has spread around the world.
Do you want to know how I am investing right now, amidst the Coronavirus panic?
Watch the video below:
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Coronavirus has hit the stock market hard.
There is a lot of fear and panic surrounding the Coronavirus. We still don't know what is going to happen to the economy. My heart goes out to all of the people who have been affected by the virus. I know that it's a real threat, especially to those who have a health condition or the elderly.
I believe that it's going to take a few months before the Coronavirus gets contained and stabilized. We are still at least one year away from a vaccine.
However, from an investment perspective, there are some great opportunities available right now. There are a lot of blue-chip stocks that you can buy at a discount. I've published a few pieces of content in the last while that will set the tone for what I'm going to talk about in this blog.
Earlier this year I shared how I'm preparing for the 2020 recession. Whether or not the Coronavirus is going to cause a recession, I don't know. In the U.S. the virus has triggered a bear market. This is when stocks drop from 20% or more from the all-time high. A correction typically happens when the S&P 500 drops from 10%-20% from all-time highs.
That only happens every year or so. Conversely, a recession or bear market only happens every decade. Right now, we are entering into this territory. That being said, we haven't hit bottom yet. Things are going to get worse. There are a lot of businesses that are going to be affected by the Coronavirus.
However, if you're prepared, you can benefit from the recession.
Recently, I published a blog that talks about how I'm preparing for the Coronavirus, both mentally, emotionally, and financially. You can never be too prepared. Today, I want to talk about how I have been investing over the last two weeks amidst the Coronavirus panic. I've been preparing for a stock market crash like this for several years.
I've been putting money aside and building a cash reserve. I knew that a recession was inevitable. I'm not an expert investor by any means. However, I want to share what I'm doing to profit from the Coronavirus panic. I'm what you call a long-term investor.
Warren Buffett is one of the most successful investors of all time. He once said, “You want to be greedy when people are fearful, and fearful when people are greedy.” Right now a lot of people are living in a state of fear, which means that they are selling stocks. Hence, there are a lot of great investment opportunities to take advantage of.
Right now, I am buying stocks. I'm not selling anything. I'm investing in blue-chip companies that have a market cap of over 1 trillion dollars, like Apple and Amazon. These are companies that have been around for decades. I never invest in anything too risky, like penny stocks. For the most part, I'm only investing in companies that can withstand turbulent times, similar to what we are experiencing now.
Thus, I don't have to sell my stocks.
I'm optimistic that the blue-chip companies I have invested in will rebound once the Coronavirus panic settles. Right now, there's a dip in the market. This means that I can buy stocks at a cheaper price, much less than what they were worth a few weeks ago when they were at an all-time high.
Specifically, the stocks that I like to buy are index funds, otherwise known as ETFs. This is one of the most secure ways to invest. When it comes to individual stocks, I like to invest in most of the big banks and financial companies. In Canada, I'm invested in TD Bank, Bank of Nova Scotia, CIBC, Royal Bank and BMO.
In the U.S., I'm invested in JP Morgan Chase, Bank of America, Wells Fargo, Morgan Stanley, Goldman & Sachs, Proctor & Gamble, and Prudential. I also like to invest in tech companies, like Amazon, Apple, Facebook, Google, and Shopify. Lastly, I'm also invested in Visa, American Express, Mastercard, Disney, and some airline companies like Delta.
I'm not investing in these companies based on the headlines or the panic surrounding the Coronavirus. Rather, these are companies that I believe are great and that will stand the test of time.
STOCK BROKERAGE ACCOUNTS I RECOMMEND:
- WeBull is a commission-free stock trading app that is offering 2 FREE STOCKS for new signups
- First Trade (International Brokerage Account)
- Interactive Brokers (U.S. and non-U.S. residents)
INVESTING RESOURCES FOR BEGINNERS:
This is how I’m profiting from the Coronavirus panic.
I'm not panicking about the virus and neither should you. However, you can never be too prepared. I am optimistic that the economy will get better and recover itself. I trust that I will financially prosper from these difficult economic times if I continue to make good investment decisions.
What actions are you going to take to make sure you prosper during the Coronavirus scare?