2020 has been a disastrous year so far for the world economy and there are likely more difficult days still to come. As well as the toll on human life, the COVID 19 pandemic has done enormous damage globally to the economies of every single country. Unemployment levels have dramatically increased, the markets have plummeted and businesses are closing down at a faster rate than ever seen before.
Many economists are predicting that we are entering the worst recession there has ever been and people all over the world are very worried. But there are people who believe that bad economic times are a great opportunity for making money.
To see if this is true, this article will look at whether it is smart to invest in the economy in 2020.
Is it worthwhile investing in the stock market?
It may seem strange to say at a time when the markets have hit historic lows but this is actually a really great time to invest in the stock market. To understand this, it is important to understand that market prices are only a reflection of customer confidence. People are very worried because these are worrying times and so naturally their confidence is down. Ultimately though, the fundamental value of companies and their products and services remain the same, no matter what the markets say.
While prices are low right now, they will inevitably go up again in the future. This is what always happens and so now is a really great time to invest when you can buy stocks at a really low price which will be worth a lot more as the economy recovers. As countries begin to end their lockdowns we will see an upturn in the markets again which makes you a great profit.
Many financial experts are predicting an unprecedented economic bounce after the pandemic is over so you could get a huge return on the investments that you make now. Knowing how to start investing in the stock market is sometimes but there are some excellent tutorials available that can teach you everything you need to know.
The financial experts of https://www.tradingreviewers.com/textbook-trading-dvd-review/ offer tutorials that may help get you started. It can be very hard to take the plunge and invest when the markets are doing so badly as you may be worried that they may still continue to fall. Ultimately there are no investments that come without risk but right now the potential benefits are so great that it is a risk well worth taking.
Can you make money from the property?
As with the stock market, this is a great time to invest in property because house prices always fall during times of economic difficulties. If you buy real estate now you can make a fantastic profit when you sell the house after the economy has recovered and the house prices have gone up again. House prices are dictated by demand and during periods of economic downturn, very few people want to commit a substantial amount of money into buying a house when their job or financial situation may be very precarious.
Because there are so few people buying, house prices naturally fall in order to encourage more people to buy. You can pick up some real property bargains during bad economic times and there are various ways to make money on these houses.
You could buy property now and then simply sell it when the economy recovers or you could buy houses to rent out. As many people do not want to buy houses right now or cannot afford to because of the economy, it is a great time to get into the rental market. If you have the money, buying a few houses in areas where there are lots of people who want to rent can be a fantastic monthly income.
Be aware that mortgages for houses you intend to rent out can have very different terms from the mortgage on your first home so you have to take that into account. If you have the savings to buy without a mortgage then this is a really great time to do it.
There are so many people who are anxious right now and it is totally understandable. The COVID 19 Pandemic has been a totally unexpected catastrophe that has caused global upheaval. But even in the worst of times, there are great opportunities. Follow the advice in this guide and you will hopefully be able to make some real money during 2020.