What Investments to Make While Coronavirus Spreads

In the past few days, the stock market has taken quite a loss. This may have you wondering if you should be investing in stock at all or what kind of stock you might buy in light of the current stock market losses. Remember that while some sectors may experience losses, such as oil and transportation, other markets will thrive.

Invest in Urgently Needed Medical Supplies

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Some companies are always able to thrive even in adverse circumstances. They offer services that are valuable to a large number of people. For instance, one product that will continue to be in large demand during this crisis is Clorox (CLX) bleach. It is used to disinfect areas that are or may be contaminated – such as kitchens, hospitals, and morgues. It will kill nearly any bacteria on a surface. It also has a very large demand and one that is likely to become much larger in the near future. It is currently at a six-month high of 168.03 and has risen 0.18 or 0.11% today.

The company Gilead Sciences (GILD) has already developed Remdesivir which may be useful to fight coronavirus. Two other companies are also about ready to test their vaccine, but it will not be perfected overnight (human testing is scheduled to start in April – Moderna, and Novavax will start testing after Spring). The demand will likely be great – especially if it spreads through Europe and here in the States.

Invest in Technological Companies That Do Not Require Human Contact

You can expect any product or parts that require being shipped from China is going to be delayed for a while. Look for companies that are technological and produce non-physical products or are completely Internet based. Social media companies such as Facebook, Twitter, Docusign, and more are likely to increase in use if quarantines are put in place.

Other companies that will be in vast demand are medical staff companies and companies that manufacture medical products. Masks, protective medical clothing, and medical equipment such as temperature scanning equipment designed to scan for people with fevers will increase in demand.

Avoid large supply companies such as Amazon because if coronavirus hits one of their supply centers, they will have to shut down. So will shipping companies (UPS, FedEx, etc.) and many fast food places.

Buying Gold

Historically, as the economy has become worse, gold prices nearly always increase. This is why gold is considered a safe haven for your money. Even though the stock market today has suffered considerable loss, gold has risen in value by $4.90 or 0.30%, now valued at $1,639.50 per ounce. This is in contrast to silver, which has dropped 0.15% to $17.90 per ounce, and platinum $914.00, which has dropped $20.00 today. Palladium, however, has risen $86.00 per ounce to a current value of $2,747.00.

Max Out Your Retirement Funds

One of the best ways to ensure your investment is not lost would be to put more money into your retirement account. This money can often be deducted from your taxes and it is safe from stock market losses.

Losses Not Expected to Last

Even though the stock market has seen some losses in the last couple of days, it does not mean you should sell all your stock. In the past, drops in the stock market were usually short-lived and tend to bounce back before long.

About Mike Valles