Should your investment strategy change in the face of a pandemic?

By June 5, 2020No Comments

Businessman Analysing Growth With TabletNo one is really experienced in giving investment advice in the face of a pandemic. After all, this is something most of us have never encountered during our lifetimes. Times are uncertain for everyone, both personally and also on the economic front.

But if you are seeking direction for your investment strategy, you can take a look at what top financial investment advisors and analysts are having to say on the subject. A search of recent investment advice revealed these recommendations.

Leslie Cliff, founding partner of Genus Capital Management Inc. recommends reviewing your personal financial plan, which was likely created with the ability to withstand volatility and should therefore still be valid, adding the advice to buy when the market goes down and sell when goes up too quickly. Also, remain patient as this time of uncertainty may not be over for a long time.

Hedge fund portfolio manager Mark Spiegel offers this advice to investors: Buy an S&P 500 index and own gold. He also noted that stocks are a reasonable hedge against the post-pandemic inflation that may be on the way.

Judith Ward, personal finance contributor for Forbes, advises those who are planning to retire soon. A good retirement strategy has a mix of stocks and bonds that are risk tolerant and can withstand market volatility. If your investment has a balanced mix, you don’t necessarily need to change anything you are doing.

Dan Rosenberg, Ticker Tape Contributor for TD Ameritrade, recommends a midyear portfolio review of your investments and making any necessary adjustments to stay on track. Don’t panic — be careful not to make hasty decisions that could affect your future profits. Stick to you goals.

The consensus of these financial analysts, contributors, and advisors seems to be — don’t panic. You don’t necessarily need to change your investment strategy in the face of a pandemic to be OK. You should review your investments and make necessary adjustments, but if you’ve had a balanced portfolio in the past, it is likely that it is able to withstand the volatility of the current financial market situation.