Investing for after the Virus

Investing for after the Virus

'Urban Dollar's' "Side Hustle" series

Strange times we live in, am I right?

If you find yourself with more free time and isolation than normal, you might be tempted to binge-watch those shows you’ve put off for a sick door. I of course, can’t blame you. I personally plan to dive into the last season of the Expense, followed by Altered Carbon and god only knows what anime. I, however, set my only schedule and mostly work from home so these strange times are my norm, in away. 

Even for me, business is slow, do to this pandemic and slow entertainment markets. Low Demand equals low supply.

Do you know what isn’t in low supply? These freak’n Stocks! Ohhh the sale offs, declines and sphincter clinching crashing our global economy is facing right now. However, if you are optimistic enough to look past it all, you may see that no matter what, we have to rebound and rebuild. 

I ask you my dear reader, will you stay beneath the economic rumble, or are you already digger for survivors?

By that last term, I mean are you prepared to financially capitalize when industries are on the rise again, stocks gain and values level off and beyond?


Don’t call it wishful thinking and we can’t yet predict a clear timeline, or at least I currently can't, but what happens when Movie shoots continue production, the social restrictions are lifted and many places go back to business as usual?


For one, Quite a few places may not make or, or even come out with a clear path to financial recovery, but if you invest now in the ones that you think are most likely to be staples in a post-COVID-19 world, then you may find yourself far better off then before the market fall.


Without making light of all the tragic circumstances our society faces in times like this, times I must illustrate, many a current generation have not seen before. I want to stress recovery and Success. Not just survival. 


As of the original time of this article, I’ve lost about a quarter of my portfolio’s valuation. 

Ask me if I’ve stopped buying shares?


What I have done, is adjusted my investment goals to reflect capitalization on recovery.


Sounds pretty heartless?


No.

Not when you’re literally investing in a shared future. 


Take a minute to ask yourself what’s going to matter after the Virus. Be superficial too.

Share your thoughts in the comments with your picks

 

 

I ask you; What should you invest in now to make gains later?

Ready for a few of my quick thoughts?


  1. Travel
  2. Real Estate
  3. Commodities

Where to go, where to stay, and what you need to be there.


That’s the fundamental theme of the assist I will be tracking and investing in. Be warned, however, as my portfolio centers on dividend and long term gains. It can be argued that many companies will be undervalued now, so Growth and value investors should still bulk up on key shares which they feel will play a major role in a post-crisis world. 


Let’s use my market picks as an example;


TRAVEL & REAL ESTATE

MGM Resorts -MGM

52 week high: $34.64

52 week low: $5.90


Currently floating around $6.85 as of March 18th but was above $32 less than a month ago.  

Down around 80%.


Kimco Realty -KIM

52 week high:  $21.86

52 week low: $ 9.30


Half the value, plenty of potentials. Kimco Realty Corp deals in ownership and operation of open-air shopping centers.


COMMODITIES

United States Steel -X

52 week high: $20.54

52 week low: $4.54


A record low as of March 18th, Steel is an example of how volatility can affect even the most fundamental of markets.




These examples can only scratch the surface of what potential markets make for key investment opportunities. I highly recommend checking the reference below to get a broader sense of what many investors are currently watching. 


The goal is to invest in entities that you have a comfortable understanding of, and not just what’s trending or is facing critical lows. 


Watch out for our next post where we will dive into other markets such as Tech and medical. To give you a head start;


Aphria -APHA

Medical Cannabis production and supply.

69% BUY rating based on 13 analysts ( Via Robinhood)

$2.11 a share currently. 


As legalization increases from state to state, the potential of this market’s valuation may exceed its $10.67 Spring 2019 High, pending market stability. 


Like Cannabis,  expect your next investment to need plenty of time to grow properly to yield the best results. 




References


https://www.youtube.com/watch?v=9vteAQJcHgk


https://www.fool.com/investing/2020/03/16/have-1000-then-buy-these-top-stocks-right-now.aspx


https://www.investopedia.com/financial-edge/0412/the-3-best-commodities-to-invest-in.aspx


https://www.fool.com/investing/2020/03/18/got-5000-here-are-4-stocks-the-smartest-investors.aspx

 

Photo by Ishant Mishra on Unsplash

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