The ongoing Covid-19 pandemic has burned many businesses – both newly built businesses and those which have been established for a long time. This makes for a tricky situation for investors as they are investing in an uncertain, unstable environment. This is especially true for short-term investors whose value for their stocks and money has often fallen short with the falling stock market. Short-term investors are now facing a crossroads regarding investment options – should they continue investing in an unstable environment where there are high and fast returns if they are lucky? Or should they think long-term with a more stable environment but with considerably lower returns? Stock market and trading expert Bryn Mawr weighs in on this issue.
Short-term or Long-term?
The Economic Impact of the Pandemic
Financial expert Mawr weighs in on the issue of trading and stock investment amidst the ongoing pandemic. According to Mawr, he recognizes that being a trader, especially in this uncertain time, can be frustrating. More than that, however, the returns are not as what traders initially projected it to be, considering that the market a year ago was saturated and flourishing. The economic impact of the pandemic is becoming more and more apparent. With unemployment rates soaring high, consumerism’s rate becomes lower and lower every day as consumers see the need to tighten their belts, and their purchasing power covers only the bare necessities.
The vaccine as the hope – even for stock investors
For many people – including stock investors and traders – their only hope right now is the vaccine. Though the vaccine roll-out process can take years, having a vaccine can have such a huge leap in the world of trading and stock investment. More than that, having the vaccine does not instantly mean that the economy would restart in a heartbeat. Now that the world has stopped and more activities can be done online, there can be a shift in consumer behavior to adapt to this ‘new normal.’ This is becoming apparent with all activities shifting to online such as online shopping, online concerts, eSports, and the like.
Even though the vaccine is paving way for the new normal, there is a marked shift in consumer behavior, which can significantly impact the stock market. This is why you should always research more about the product or service you are investing in – and ensure that you are putting your money somewhere where it can only slightly be affected by the pandemic or a similar crisis.
Think Long Term
Financial expert Mawr reiterates to all financial and stock investors to think long term. Even with the advances to beat Covid-19, the stock market will take a while before it transforms into a stable environment. Investors should think long-term to get the proper value for their money. More than that, investors should focus on long-term growth instead of the daily, often frustrating ups and downs that dominate the stock market news. It is normal for stock options to titillate as we are in an uncertain environment. Traders should have a long-term strategy and vision to obtain maximum profit.