“When the Black Swan flies in savvy investors seek opportunities to develop their portfolios“– Paul Ebeling
The COVID-19 casedemic chaos has rearranged so much of how people manage their day-to-day lives and financial investing is included.
Lockdowns, shutdowns and stay-at-home orders changed peoples routines, impacted economies and investments.
For some COVID-19 underscored the importance of exposure in all sectors of the market.
When the Black Swan flies in savvy investors seek opportunities to develop their portfolios.
There is always lots of room for smart investing and financial growth.
Below are a few professional tips to approaching investing in this post-VirusCasedemic world, as follows:
Understanding the landscape: It is your advisor’s job to ensure your portfolio represents what the current economy is, and to explain how your investments aligned with the market.
Because The China Virus weapon came on so fast more traditional forms of allocation in a portfolio were altered.
Traditional asset allocation changed, because the professionals know how important it is to have exposure in sectors that are trending.
At times it may be beneficial to overweight trending sectors, such as businesses that are considered essential may offer more stability. Make sure you are taking a close look at investments and aligning them with the market.
Sector discussions are Key in today’s economy. The the VirusCasedemic has changed how people learn, work, socialize, and shop. These shifts in behavior move directly into the economy, and investors must be selective about sectors in order to meet the challenge of change.
Before COVID-19, specific sector selection was not so necessary. But now we see certain markets over the past yr, like healthcare and tech, drive North, while others, like energy, materials and finance lagged. The way people conduct business during uncertain times has shown investors how important it is to choose Key trending sectors intentionally.
The reality of the VirusCasedemic is that some industries suffered long-term hits and may well take yrs to snap back, such as co-working spaces, airlines and cruises. Others that got hammered could bounce back quickly and offer significant opportunities for good returns on investment.
The financial sector struggled in Y 2020 has bounced back since the beginning of the new year.
As you consider investing in Y 2021, do not be afraid to look for cheaper stocks of Key companies and then be patient.
As vaccines roll out and should more aid/relief/stimulus is added to the economy, stocks in some of the well managed laggards will offer strong opportunities for higher returns, compared with those that already returned big in Y 2020. Look in the Russell 2000 Index the medium and small cap domestic stocks are shining: Russell 2000 +15.9% YTD Vs. S&P 500 +4.8% YTD and DJIA +2.8% YTD
Do: Explore adding investments to your portfolio that provide Southside protection in the event of a downturn. These are essential components of a portfolio.
Good financial advisors incorporate Southside protection for investors irreplaceable capital. These investments provide buffers and a certain percentage of downside protection in the event of a market correction or a dive into a Bear market. This extended Bull market will not last forever.
As we move ahead invest wisely and be willing to make adjustments and disciplined about taking profits.
As the US opens up review your portfolio frequently and rebalance as necessary to ensure your goals will be met.
Have a healthy weekend, Keep the Faith!