Market Update + Making Smart Investments during COVID-19

Back again with another recap from our second EQU(ALL)ITY workshop with Antoine Shamlee. This time we kept it strictly to the stock market and the pending depression our country is currently facing. Let's get into it. Top 5 takeaways are as follows:

1. We are in the first inning of a depression

In 2008 we experienced a recession due to the Subprime Mortgage Crisis (watch Too Big to Fail or The Big Short) that lasted for 1.5 years. A little over 10 years later we are entering another recession due to COVID-19. A vaccine is being promised but that will take some time to make the impact we’d like to see. A recession will not last for a few weeks but a few months to over a year.

2. When investing utilize stop loses

You should implement stop loses to match your risk tolerance. For example, you buy a stock at $10 and it goes up to $40. Implementing a stop loss at $30 or $35 will ensure you keep that 20/25 per share gain rather than it falling lower. KNOW YOUR RISK TOLERANCE AND DON’T BE GREEDY.

3. Set a plan for 2 to 3 years

Operating in uncertainty requires planning for the worst and hoping for the best. With that being said, we should practice good money management through budgeting, planning, and savings. Remaining liquid will help relieve stress, manage unexpected expenses, and reduce risks.

4. Gold is safe, Crypto...not as much

Gold has always been a steady go to commodity to invest it especially in times of a weak economy. Use Gold as a safe harbor for some of your investments until the situation is less dire. Crypto is still a shaky topic. It's not backed by a government entity therefore it’s potential is limited to what it is now and black market activity. Can you make money in crypto? For sure, however, it’s tough to predict.

5. 20% is a realistic return

We all have dreams of hitting 2000% returns on a sleeper stock and boasting about it. But let’s be realistic, anything more than what you put in is something to celebrate. 20% returns can be achieved fairly easily by not being too risky and not being too conservative. Remember, this is all a form of gambling to a degree. If you're not a day trader (i.e full time) be realistic.

Honorable Mention: Stay healthy and stack your chips this Fall and Winter

With Flu season on the horizon and the rumblings of a second wave of COVID-19, it is imperative that we remain healthy and out of the hospital if possible. Take a look at some health and nutrition information that will help you stay strong and resilient.

During times like this it’s important to have a Financial Advisor to help navigate these times of volatility. Feel free to give Antoine a call.

Orion Wealth International

Antoine Shamlee

P: 201-330-0679

**UPDATE: During the workshop we discussed options. A bit of clarification, buy a put if the market is going down. Brokers write a ticket to do the actual trade. Writing or selling puts is different than buying puts. We will go into more detail during the next workshop. 

Also, 40% of America's businesses are small business which contribute to consumerism. 

Watch the Full Recap Below. Until next time! Stay plugged in for our next session!