Investing in the Time of Coronavirus

These are very confusing times for most people. While the fear or the coronavirus is spreading across the world, people from all over are trying to figure out how to best act.

Besides social distancing and efforts to stop the spreading of COVID, many are also trying to find ways to protect their investments and plan for the looming recession. By now, it’s become obvious that the coronavirus will, and in many ways, already has had a negative impact on the global economy.

However, more than just protecting current investments, many are seeking new investment opportunities related to the virus. This is especially true when looking at investments in biotech companies that are working on developing a vaccine and even a potential cure for it.

The question is if you should and in that case, how you can invest and benefit from COVID-19.

Biotech Companies That Could Benefit From a Coronavirus Vaccine

According to several experts, including the trading professionals over at BullMarketz, there are several ways one can try to invest in the development for a coronavirus vaccine. This mostly involves buying stocks in Biotech companies.

In fact, while most financial sectors are struggling right now, the pharmaceutical sector is one of the ones with the most relative strength and stability.

Examples of Companies and Possible Investments

At the time of writing, several major biotech companies are actively working on a solution to the coronavirus epidemic. That includes Regeneron Pharmaceuticals, Forty Seven, Gilead Sciences, Iovance Biotherapeutics, Novavax, Moderna, Inovio, Compugen, and Omeros, to mention a few.

The problem is that it’s more or less impossible to pinpoint which of these companies will make the most progress and therefore be the most lucrative investment. But there might be a smarter solution that has been recommended by several experts.

There is an Exchange-traded Fund called The iShares Nasdaq Biotech ETF (IBB) which is performing well at the moment and that also includes several of the above-mentioned companies.

In other words, instead of trying to pick one or several biotech companies on your own, investing in the aforementioned ETF, will likely produce a better outcome.

Mostly a Game of Luck

With all that said, we want to clarify that placing the right coronavirus-related investment at this stage is a guessing game. There is not even a guarantee that there will ever be a vaccine or that biotech companies won’t suffer from the looming recession.

Therefore, we advise you to be extremely careful and only place investments that you feel comfortable with based on your own analytic work. As always, you should invest in companies because you believe in the company and their work, not only based on the unlikely chance that they will be the ones that get to patent the COVID-19 vaccine or cure.

Other Things to Consider when Investing in the Future or Corona

Also, don’t forget to take measures to protect your portfolio before it’s too late. Hopefully, most of you have already done so, but if you haven’t, there are a few things to consider.

  1. We are likely heading for a recession so we all need to protect our portfolios with long-term strategies. Sooner or later, the market always bounces back but, at this point, that could be a few years from now.
  2. Consider diversifying your portfolio with “safer” assets such as commodities, cash, and even high-quality bonds.
  3. In case you’re willing to add a little extra risk to your life with the potential of making a decent return, you could consider short trading the stock market. Even if we’ve already seen record-breaking declines on the market, the trend will likely continue for a while, creating many exciting trading opportunities.

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