investment plans

Consider putting investment plans on hold during the COVID-19 crisis to focus on servicing instead

The current state of the economy is uncertain. The pandemic has caused a fright worldwide, with crippling health and economic setbacks for numerous countries. But should you place your investment plans

In many places, life is at a standstill with lockdowns and movement control orders. Many investors and traders were expecting this scenario to play out sooner or later. Some were prepared and many weren’t. The Dow, NASDAQ and S&P markets closed significantly lower recently, and hopes for a quick rebound were diminished when all three continued to decline.

Many factors are to be considered as causes of the economic slowdown we are all likely to find ourselves in. Either way, the past few weeks have brought fear and if you’re an investor, you might not be sure about what moves to take for your investment plans.

Hold your horses, investing right now might not be a good idea

There’s a lot of speculation and discussion out there in the financial sector right now. It’s quite a frantic blur of information. Some sources claim that now is the best time to invest in certain areas. However, this might be the time to take a conservative approach with your portfolio. It might be better to stay on the safe side of the fence.

Now may not be the best time to “invest”. Things are dropping and markets are too volatile at the moment. To take an offensive approach right now would probably be closer to gambling through high stakes and risky decisions.

Instead of investing, focus on other areas of your financial strategy. It might be a good idea to move your assets into cash to keep them from depreciating. Many investors are not calm during this turmoil, and they are not in the right state of mind to be making smart decisions. In fact, many advisors aren’t able to keep their clients calm during this time of crisis and there’s a fear that erratic decisions may put the value of their assets in danger. It may be a better idea to, for instance, convert 100,000 dollars into cash now rather than let it fall and at the end of the crisis see a significant decline in value to 80,000 dollars.

investment plans

Think about taking this time to get your servicing right

Consider this an active downtime of sorts. The silver lining here is that you can take a step back and look at your situation with a better perspective. It might be time to get help with your servicing in order to ride out these bad times and be better prepared once the storm subsides.

Servicing could be a real lifesaver. Consider consolidating assets, moving them to cash,and looking for alternative investments that can help you with safety by appreciating in time.

If any of this has struck a chord with you, reach out!

Hampton Wealth can help with all these initiatives and is offering a 50% discount on the current servicing fee as of now in order to help investors and clients find their footing.

Now’s the time for action, either way

While it might be a good idea to hold back on your regular investment activities, it doesn’t mean that it’s a time to stay inactive with your finances. In fact, now more than ever, time is of the essence. The market has now dropped by at least 20%, and remaining dormant could compromise your stability in so many ways. Your assets might begin to depreciate further, which may lead to possible panic and bad decision making.

Try and stay safe, move fast, and mitigate risk; that’s the gist of it. On top of all that, guidance and sound advice can help you weather the financial storm and even put you in a better position at the end of it.

Hampton Wealth specialises in sourcing high quality, listed bonds and funds with a focus on providing returns in excess of normal off the shelf investment options.

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