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How to invest in uncertain times?



There is a feeling in the global market that another recession is around the corner. Although it’s very difficult to say anything right now.

But before the things in market start getting worse, we need to decide on our investment strategy in advance. We don’t need to put our investments on hold rather we need to invest our funds smartly.

Is there any ideal strategy?

The future in front of us is very uncertain so this is not a right time for innovation. You may need to stick to conventional and safe investment strategy. The corona virus situation is still a puzzle even for the leading economists of the world. So, it will not be an ideal strategy to try anything new. Focus on the one you have tried and tested before.


Here are some quick tips to keep in mind:

1. Keep the risk minimum

This is not the time to experiment something new. Don’t take big risks. So, you need to avoid investing in companies which are very speculative and highly leveraged. You need to find companies with stable cash flow and low debt. It might be the safe investment option.

2. Focus on the company which had resisted recession in the past and their business is non-cyclical

It will be good strategy to invest in a company which is offering products and services non-cyclical in nature, like cosmetics, grocery, medical, other fast moving consumer good items, etc. These are the kind of industries which are selling essential items. People will have to buy them irrespective of their financial conditions. Such industries are resistant to recession in compared to others.

3. Stocks which provide regular dividends

Such stocks can provide you a source of passive income. You can look for companies in the market which are giving dividends to their equity holders on regular basis. You can find a suitable company which has a low debt-equity ratio.

4. Fixed interest bearing instruments

Some companies having good credit scores often issue debt instruments providing fixed interest on periodical basis. They are same as GICs issues by bank. As those instruments are secured, it’s safe to invest in them. It can also generate some passive income.


5. Low cost diversification ideas

You may also try some low cost diversification ideas. It’s always nice to have multiple sources of income. They help to save your existing business. You can start selling your products on online platforms like, Amazon, Shopify, etc. You can also start providing online services like a webinar, informative videos, coaching in the area of your expertise, etc.

For many investors, the current economical situation is scary, but if you are investing strategically then it can create a great opportunity to make money.


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