As the world shut down and the global markets faced a giant slump due to the Coronavirus pandemic, it got many of us asking the same question “what to invest in right now?”. It is really a difficult question to answer as we’ve never seen a situation like this ever before. The whole world got pushed into lockdown with shops and businesses closing down for good. However, the situation is never that bleak, we can always find some ways to make money or at least invest it somewhere so we can reap some profits off it in the future.
Our markets are slowly opening now but there is a high chance that we might head straight on into a recession. This means there are very limited ventures that you can invest in. so we’ve compiled a list that answers the question of what to invest in right now? We give you 5 things that you can invest in and make profits or simply keep it running in cash flow.
What to Invest in Right Now?
Here are the 5 things that you can invest in 2020
- Buy Gold or Silver
- Deposit around 200-250K Dollars in FDIC insured banks
- Keep the cash in a safe at your home
- Property Rental Business
- Farmland/Farming
Buy Gold or Silver
We advise that you invest at least 10%-15% of your total net worth in either silver or gold. The main reason why you need to do this is that it acts as an insurance policy if all else fails. The best thing to do is to deposit your gold and silver into safe storage provided by a well-known storage facility. You can also keep some of it in a safe at your home just in case, for emergency situations.
The insurance here that this provides is that if the market goes into recession and the stocks crash, gold and silver follow the trend of either going up or holding most of its value. Buying Gold and silver is the best way to keep your money secure in these hard times of unpredictable trends. Buying gold is the best answer to what to invest in right now?
Also Read: How To Invest in Real Estate with Little Money? Some Ventures You Can Invest in Easily.
Deposit Around 200-250K Dollars in FDIC Insured Banks
Another way to secure your money is to deposit them in small amounts in different FDIC insured banks. Don’t ever deposit an amount greater than $250,000 in a single bank as FDIC only insures “$250,000 per depositor, per bank”.
What does the FDIC Cover?
- Checking accounts
- Savings accounts
- Money market deposit accounts (MMDA)
- Negotiable Order of Withdrawal accounts
- Certificates of deposit (CDs)
- Cashier’s checks, money orders, or any other bank-issued items
What Does the FDIC Not Cover?
- Stocks
- Bonds
- Municipal securities
- Mutual funds
- Life insurance policies
- Annuities
- Safe deposit boxes
- Treasury bills, bonds or notes
Keep all this in mind, there might be chances that the FDIC might change its insurance policies if the Coronavirus situation worsens the financial conditions of the global and international markets.
During bleak financial situations in the past, the government has changed its policies regarding how much amount the FDIC covered. If the global economy and national economy continues to worsen, there is a possibility that the FDIC could change the amount that they insure or how they insure it.
The best option is to deposit your cash in big banks, as they have huge amounts of capital and cash. In some recent reports, it is stated that big banks have around $2.5+ trillion liquid assets and $1.2+ trillion in equity.
Keep the Cash in a Safe at your Home
In these hard times, you must also keep a hefty amount in cash on you. We suggest that you keep at least 10%-15% of your total net worth in cash, stored at a safe in your house. This may sound a little too much to many people but these are uncharted waters we are in today. The only time that is the closest to our current situation is the Recession of 2008, and at that time many banks froze all their accounts and people got locked out of their own money. This is why you should always keep some cash in hand for unpredictable situations like these.
The other problem is that many banks have put restrictions on how much money you can withdraw, like a maximum cap of $5,000. And since most banks don’t pay any interest, you’re not losing on anything. This makes having cash in hand or in your safe a really important footnote. So, maybe the only answer to the question “what to invest in right now?” don’t invest at all, keep your money at home.
Farmland / Farming
Many financial experts and organizations are speculating that there is going to be a huge range of economic drought as the direct and indirect consequence of the coronavirus. This means that the only constant demand is going to be for food and agriculture-related goods. Investing in them is also a good answer to “what to invest in right now?”.
You can simply invest in farmlands by purchasing any running farms or you could with a little more effort to create your own farm from scratch. The business practically runs itself with just a handful of employees and workers and a simple distribution network.
Some other ways you can invest in farmlands:
- Shares in Farmlands
- Farming Equities
- Agricultural Commodities
- Farming Mutual Funds
Property Rental Business
Because of the Coronavirus pandemic, many people are now giving second thoughts to how they are living their lives. Many people are stuck in their apartments in cities like New York and want to live a life in a more open environment now.
The demands are going up for single-family houses as many city residents are moving out of the cities to the suburbs so that they can have more space and an open environment like yards and porches. With this said, there is also a lack of supply in affordable houses. This means that there is a gap in the housing market that you can fill with your investment, gaining that perfect edge every business needs.
Mostly, and mostly we mean 90% of the time, people rent houses. This means that there’s always a demand in the property rental business in the niche of single-family houses in the suburbs.
If you want the answer to what to invest in right now then this is the perfect opportunity for you. Here’s a list of reasons why you should invest in the property rental business:
- Demand constantly increases, along with the rents
- Interests rates are usually low
- Not much competition as not many people are investing right now
- Mortgage rates are forecasted to stay low
- Buy cheap property right now to sell it in profits
Also Read: Are Real Estate Investment Trusts A Good Career Path? A Brief Guide to REITs and Their Future
Conclusion
As the world is facing a very difficult situation, only those will pass through these times who are smart. You must analyze the market very carefully to decide where you want to invest your money or whether you should invest it or not. The possibilities are a little limited but you can make the best out of them with just a little extra effort, dedication, and planning.
