The lockdown has eroded the business sector in 185 countries worldwide and it is still growing. This situation has caused investment platforms to massively dropdown. Now, how do we maximize your investments during a lockdown?
Point #1: Be Emotionally Healthy
The most important factor when investing is your emotional condition. Remember when you previously took your Investor risk appetite test? When you scored around 12-15, you probably on the side of index fund type of investor. This score should not change even if the tough gets going. The only question to ask here is if you got the right fund. Now, because the emotional condition is very important in investing, maybe this is the right time to assess yourself. “Am I really on this type of investor?” Then if not, maybe today is the right time to go back and take the test again.
Taking the test is one way or another recalibrate yourself from the previous years' market condition. Do you remember your investment type during the 2008-2009 recession? If not you can still retake your risk profile questionnaire here. That period was depleting on the bank's side. Today we are being affected by lockdown preventive measures which has caused the business to come to a halt. This resulted in a drastic decline in the “Spending” of the consumers.
Point #2: Diversify your investments
After you revisited your risk appetite its time to review the fundamental sections of your stocks or funds you have. If you are using a trading-investment platform such as COL Financial, BPI Trade, Phil Equity and etc, you may want to check the following stocks.
If you notice on the above companies, they are the fore player on what is happening today. The necessities, such as Electricity & Food are still the major source on our best stock offense. So, Meralco which is the electricity provider in Metro Manila is seen to be growing steadily in the market. The Puregold and Universal Robina are positioned in the consumer staples. They provide the basic needs of the community. The “Work from Home” scheme had been undoubtedly helpful to continue with the IT business and other BPO & IPO industries. As such, in the Telco and Utilities, we can see the Globe and Manila water to be essentials in the household.
Point #3: Home Based Jobs
The lockdown has pushed the work from home as the business continuity plan of most of the corporate jobs in Metro Manila. They have modified and remodel the strategies as the government-mandated. For example, the PEZA devised a flexible working agreement among the members which enables the employees to bring their laptops and working devices to their respective homes. The issued Memorandum Circular No. 2020-011 is taking necessary measures to guarantee the safety of its employees in all its jurisdiction against COVID-19, which already has reported local cases in the Philippines,” said PEZA Director-General Charito B. Plaza.
Point #4: Invest in yourself
According to Benjamin Franklin, “Tell me and I forget. Teach me and I remember. Involve me and I learn.” The point is to maximize investment, we should never stop learning, even in this time of uncertainty. We should always look at the brighter side of what will happen after that. So the best thing to do is to prepare before the lockdown is over. Moreover, before the battle comes you have to refuel your guns. And this gun is us. We have to keep on learning and advancing ourselves. Advancing in such a way that we have the right mindset in life.
Also, learning is the best way to keep us busy and so not to be affected by the discouraging news outside. According to American Psychological Association, the “coronavirus is an epidemiological and phycological crisis”. Which means, anxiety, panic attacks, depression and suicide are the highest conditions that would affect individuals. So it is very important to seek support from family, friends and support contact. Also, learning is the best way to exercise our mind to think.
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As a summary, having a stable emotional mindset on investment, diversified stocks funds, increasing your funds using online jobs, cultivating your mindset through learning will maximize investment during lockdown. My prediction is when these major components are addressed immediately there will be 80% chances that you will likely adapt to this changing world.
Hi, my name is Jack Marbida, I am a financial coach for over 4 years now. My goal is to help thousands of Filipino people understand and embrace the spirit of financial preparation through our program, "Financial Freedom". I know you need help but you just don't know where to start. Allow me to help you establish a brighter future. Click below for more information. Check what I have been doing here.
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