The new Coronavirus has absolutely wrecked markets around the world. During the week of March 20, 2020, stocks saw their worst declines since the height of the financial crisis in 2008. After the market was just coming off of fresh highs, economists are now talking about the possibility of a recession, or even a depression.
Obviously, this is a scary time for investors. But it’s also ripe with opportunity if you know where to look. By being smart and investing in the right kinds of stocks and bonds, you can come out of this economic downturn a lot richer.
Interested in learning more? Continue reading and we’ll walk you through everything you need to know.
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Millions of people are being sent home to work. Working remotely was already growing in popularity but now it’s accelerating. Stocks like Zoom, Microsoft, and Cisco, are your best bets.
Zoom Video Communications provides video communication platform services. People are using Zoom to video chat with their coworkers, classmates, customers, friends, and family. The stock itself has been on a tear since November of 2019 and continues to climb with each passing day.
Not only is Zoom becoming more and more popular, but it may very likely end up being used by many companies even after the Coronavirus goes away.
While the market has been tanking, Microsoft has held up relatively well. And now, their price has come down to levels that are more attractive than before the virus.
A lot of what’s buoyed this stock is Microsoft Teams. Teams is Microsoft’s competitor to Zoom’s video conferencing platform and Slack’s chat platform. The use of Microsoft Teams has increased greatly since the coronavirus took hold of the country.
Cisco Systems has been getting hammered like the rest of the market. Yet, many economists say that this is a mistake and Cisco will likely bounce back stronger than ever. This company sells network devices and software.
Its communication solutions, like Jabber and Webex, are used by remote workers who are looking to collaborate and communicate from anywhere. Thanks to the expansion of the free version of Webex, more people have been integrating the solution into their work lives.
As people become more familiar with these systems, Cisco is poised to benefit. And the stock price is now much cheaper than it was just a few weeks ago, meaning that it’s a good time to start buying.
Whether it’s because the hospitals are starting to reach their full capacities, or because people don’t want to go to hospitals and get more sick, telemedicine is starting to become a lot more popular. Since the start of the new year, Teladoc shares have risen dramatically.
Teladoc lets doctors provide consultations to patients through teleconferencing on devices like tablets and smartphones. But the rise in Teledoc usage isn’t just speculative. The company has seen its number of patients increase significantly over the past few weeks.
Verizon used to be considered a boring stock. But these days, boring is actually what you want.
For one thing, Verizon has plenty of cash on hand. Also, people are now using the internet even more than they were before!
Another boon for Verizon is that it’s viewed as a defensive, dividend stock. This means that you can collect income just from owning the stock.
Plus, 5G will be coming to America soon. And that means a whole lot more opportunities for telecom companies like Verizon.
Everbridge is a software-as-a-service company and they’re considered to be a leader when it comes to managing critical events. The company makes software that is used for mass notifications.
Automated notifications can be sent to help keep government agencies and businesses running, and keep people safe, during a variety of different emergencies. Everbridge’s messages can be sent via 100+ different electronic devices and their systems can track the progress of response plans.
Within its industry, Everbridge has the biggest platform and they have already sent millions of messages about the coronavirus. These messages have been local as well as global. And the coronavirus will only accelerate the adoption of Everbridge’s services.
Their share price has continued to climb despite the stock market drop.
Quidel manufactures diagnostic testing kits. The kits fall into four categories:
- cardiac immunoassay
- molecular diagnostics
- rapid immunoassay
- specialized diagnostics
In mid-March, Quidel was given approval for its coronavirus testing kit. And the company also specializes in flu testing services. Many experts believe that the coronavirus has only made people more inclined to get flu testing.
When the next flu season comes around, there will likely be a lot more people who will be tested for the flu as well as the coronavirus.
Bond Mutual Funds
Bonds offer you downside protection but you also get plenty of upside potential. Unlike stocks, where the companies they represent can go bankrupt, treasury bonds are backed by the US government, which is a lot less likely to default.
Bonds are known to do well during times of economic uncertainty and investing in a fund that tracks the bond market is a great way to get involved.
The Importance of Knowing Where You Should Invest in Stocks and Bonds
Investing in stocks and bonds is one of the best ways to grow your wealth. And times of sudden economic downturns shouldn’t stop you from investing. Instead, you should view them as welcoming entry points into a market that was already far too expensive.
Are you concerned during these difficult and trying times? Make sure you know how to conserve your funds while the coronavirus is going on!