Every day we see how trillions of dollars or their equivalent in local currency are printed in the world, with the aim of injecting money into the population so that it does not leave their homes. The value of money is constantly depreciating, the question being one million: What to invest in?
At the time of writing, a barrel of oil (WTI) can be bought for US $ 17.70, a third of its value two months ago. Oil consumption has plummeted worldwide, as the majority of the population is in quarantine.
The stock exchanges only look for key supports, and nobody wants to bet on traditional companies, since consumption in general will be seriously affected by the global recession that will cross the world.
What to invest my money in?
Below I will list some ideas to invest money in times of coronavirus, which apparently will be long. To maintain order I have divided it into groups of common assets.
Invest in cryptocurrencies
Cryptocurrencies, especially Bitcoin, cannot be missing from an investment portfolio in times of crisis. Digital assets are here to stay, and there is no doubt about that.
Now, keep only Bitcoin or diversify? Personally I think that at least 60% of the cryptocurrency portfolio should be only Bitcoin, then you can look for other interesting projects such as Ethereum (ETH) and Binance (BNB).
Also, another good idea is to have at least 10% in Stablecoins, in order to escape volatility and have liquidity to take advantage of opportunity purchases.
Invest in Metals
Metals throughout history have been active havens par excellence, especially gold. In this pandemic it is no exception, and gold is already trading at US $ 1,700, a value that has not been recorded since 2012.
If the Coronavirus continues to plague the world, the price of gold will continue its upward trend. Being a probable target the US $ 1,900.
On the other hand, there is the silver that is negotiated around US $ 15.30, an interesting purchase value considering its potential.
To summarize, in my metal portfolio I would have 80% gold and 20% silver.
Fiat Money
Investing in fiat money at this time can be more than risky, since the massive printing of banknotes around the world, lose more and more value…
But as in all sectors of financial assets, in money, there are also currencies that act as a refuge, the main ones being: Japanese Yen and the Swiss Franc. Both have shown throughout their history that they preserve their value. If we analyze in detail the history of Japan and Switzerland we will find the answer, or at least we will approach it.
As can be seen in the graph below, both the Yen and the Swiss Franc had a strong appreciation when the Coronavirus crisis broke out. Now they show some correction against the dollar, but they maintain their positive trend.
In short, as the pandemic continues, the most reliable currencies for keeping fiat money are the Japanese Yen and the Swiss Franc.
Stocks
Investing in stocks right now can seem risky, although like in all sectors, you can always hunt for good opportunities if you understand what to invest money in.
It doesn’t take a rocket scientist to realize that in quarantine times few sectors remain active, such as consumer goods, pharmaceuticals and digital entertainment.
In mass consumption, an interesting opportunity may be Walt Mart, which, after the collapse in mid-March, begins to show strong signs of recovery. Another interesting action is that of the French Carrefour, which is at a good level of purchase.
Regarding pharmaceutical companies, I will not recommend any in particular, due to the delicate situation that the global health system is going through. I leave you the concern to investigate on your own.
The big winner in this pandemic is Netflix, where the strong increase in subscribers since the beginning of the quarantine, has caused its action to practically double its value.
At the time of publication, the value of its shares is US $ 428. The graph below shows how Netflix has evolved since the start of the pandemic.
Conclusions
- I personally believe that cryptocurrencies, especially Bitcoin, are one of the best asset havens in the times of Coronavirus.
- Other assets that can be included in the portfolio are gold and the Japanese yen.
- All the information in this content should be taken for informational purposes only, not intended in any way to urge the purchase / sale of financial instruments.
