Where to invest money during 2020 coronavirus crisis to get good returns?

Where to invest money during crisis 2020 to get good returns?

Where to invest money during crisis 2020 to get good returns?  That is a question many investors ask in 2020.

Since coronavirus outbreak in Italy last month, world´s stocks felt very deep. Some of them lost 20-30%, some even more. Restrictions lifted by many countries hurt our economy and so it is no surprise that stock prices experienced a free fall. Some analytics compare this situation to the Great Deppression in 1930-1932.

If you ask me „Where to invest money during 2020 coronavirus crisis to get good returns?? , I will reply…of course in stocks 🙂  I would not invest money I cannot afford to lose or money I will need in following months to live on.

However I am sure that stock´s prices will return back sooner or later. It was so in the last 100 years so I do not see any reason it should be any different this time. The only question remains: How long will it take? It can take 1, 2 or 5 years. So once again. Do not invest money you´ll need in following years.

 

kam investovať v čase krízy

Stock prices drop we have been experiencing last weeks is compared to the Great Depression but as you can see from the image above, stock market recovered in following years despite the fact that couple of years later World War II began.

What is  Warren Buffett buying these days?

Couple of days ago I have noticed that famous investor Warren Buffett bought shares of  Delta Airlines  despite the fact that airline companies were hit by coronavirus crises really strongly.

delta airlines chart

Delta Airlines shares dropped in last month by  -66% from $60 per share to unbelievable  $20 per share.
If this stock ever get back to $60 per piece, Mr. Warren Buffett will gain +200%.

As you can see, some stocks of well known companies are a real bargain not to be missed. However, we ordinary investors might not have enough in-depth informations about companies like Mr. Warren Buffett, so it can be a tough task to pick the right companies to invest in.

I do not recommend to bet all your money on a single stock. Better way to invest is to diversify your risk by investing in 10 or 15 companies.

If you are afraid of picking stocks yourself, you can always invest into indexes like S&P 500 which follow performance of underlying companies. In this case it is like you would invested in biggest 500 american companies at once.

 

As you can see from the S&P500 chart above, this index dropped from 3,380 to 2,186 in last 30 days. Currently it bounced a little bit back, but still, it is -26% down.

So if you invest in this index today and it will back in previous highs in future your gain will be +35,2%. It is still a fantastic gain compared to your bank account´s performance. What do you think?

Of course nobody has a crystal ball so we do not know how long this recovery will take. So invest wisely and do not risk money you need for yor day to day living.

Where to invest money during 2020 coronavirus crisis to get good returns and how?

  1. During crisis like this I invest in stocks. That is for sure. For this I use a social investing platform eToro which I have been using for more than 6 years and I am very satisfied with them. Besides stock investing, eToro offers Forex, commodities, indexes or cryptos or copy trading. I want to invest
  2. I invest only money I do not need for my living.
  3. I do not bet all on one single stock.I diversify my risks by investing in 10-15 companies from different industries or by investing in indexes.

eToro is a multi-asset platform which offers both investing in stocks and cryptocurrencies, as well as trading CFD assets.

Please note that CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75 % of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.