Investing in times of crisis: how to invest money

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You can benefit from any situation, you just need to choose the right moment

Investing in times of crisis: how to invest money and make a profit. Photo: Innovacode

In the midst of the 2008 crisis, small domestic producer Reckitt Benckiser earned a staggering £ 373 million in a quarter. Together with the company in a short period of time, investors became prosperous – those who invested in the industry. There is nothing unusual in this story – in relation to the crisis, the population spent less time on the road and more for cleaning in the apartment. This is where Reckitt Banker Funds were needed.

Thus, a crisis is not always synonymous with bankruptcy. Efficient investment will not only help save money from the damaging economic downturn, but also Increase in wealth. Just like in quiet time. Furthermore, the crisis is a periodic event, but the money invested in this period can become a catalyst for stable income in the future.

There are many options to make money on investment in a period of crisis. The main rule is always the same: you can benefit from any situation, you just need to choose the right moment. A basic analysis of market conditions, forecasting and risk assessment will help any investor make the right choice.

As it may, one of the most common ways to invest is Real estate investment. The advantage of the option is that prices in the region change slowly and with some effort, their leap is to predict more than realistic. Even in the most difficult times, real estate is a financial asset, and even acquired at the right time, it will bring substantial income after the crisis.

Investing in times of crisis: how to invest money and make a profit. Photo: PrivateMoney

It remains popular Investment in precious metals. In this regard, it is worth distinguishing three subspecies of such investment: investment in gold, jewelry and metal accounts. A metal account is a single bank deposit, but not in a banknote, but in gold, silver, palladium or platinum, but is more reliable and promising in terms of investment.

As for straight gold bars. When buying them for resale, it’s worth remembering: Bullion is more difficult to sell than to buy. Even in the same bank, even with a specialist in precious metals.

But the worst option is Invest in jewelry. The price of such products is incredibly mobile and subject to speculation – the cost will be very different from the cost when purchasing. That is, it is possible that even after the crisis, the purchased jewelry cannot be sold at half the cost while purchasing.

If we talk about jewelry, it is considered more suitable for investment. Antiques. In a crisis period, it can be bought several times cheaper than the costs, and more than that it will cost in a healthy market. In addition, antiques become more expensive every year, regardless of the state of the economy, and are considered an excellent investment: on average, the value of antiques can increase by 20–30% per year.

Investing in times of crisis: how to invest money and make a profit. Photo: PrivateMoney

The most reliable way to win and lose Stock purchase. It was thanks to him that the investors of Reckitt Benckiser became wealthy, which calculated the company’s success into a crisis. If you place bets on future bankruptcies, investing in shares can result in a complete loss of money. Therefore, for such investments, it is simply necessary to understand the demands and conditions of the crisis, in any case not to invest money at random, or after anyone’s furious call.

For example, in times of crisis caused by the coronavirus epidemic, companies providing consumer goods, medical goods, or utility services are considered the most reliable for investment. In addition there are stocks of promising technology companies that can survive an epidemic without incurring huge losses and bankruptcy.

Talking about bankruptcy, the post-Soviet Union has a disastrous trend. Invest in bank deposits – Despite the lack of tangible profits and the risks posed by the crisis. Indeed, when held for a longer period, accrued interest cannot compensate for the loss of inflation, not to mention the possibility of ruining financial institutions with severe economic cyclones.

So, the right investment is a great way to improve your financial situation despite the crisis. But it is important to remember that any investments are subject to risk, requiring stress resistance, continuous analysis of the market and the economic situation overall. At the same time, investing is a better strategy of behavior than saving “under the mattress”, which will certainly not bring a penny.

Read: Banks, loans and a financial pillow: how to save money during a crisis.


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