6 tips on investing during periods of uncertainty

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Yieldstreet staff

May 1, 2020

During periods of economic uncertainty, such as the current coronavirus pandemic, many investors tend to panic and oversell. However, times like these, when things look like they can’t get any worse, can have potential to be financially lucrative times to invest. But just like during times of economic prosperity, it’s important to have a well thought-out strategy. Below are a few key tips that may be helpful to keep in mind when investing in a tumultuous market.

1. Continue your long-term investment strategy

It’s important to have a long-term mindset. Eventually, the current crisis will begin to resolve and life will be back to normal, even if it’s a new kind of normal. People will go back to work and corporations will begin providing the same goods and services that they did previously. With this in mind, investors may want to consider investing their money in opportunities where they see value and remember that while things might look bad now, they won’t always be this way.

2. Dollar-cost average your investments across time

Timing the market is a risky endeavor, but you don’t need to go all-or-nothing with your investments. Consider incrementally investing with a routine cadence to help smooth out the ebbs and flows of market fluctuations. Think about investing your capital in healthy companies while things are as cheap as they are now.

If investors take a portfolio approach and diversify between bonds, equity, real estate, and alternative investments like those that Yieldstreet offers, they have the potential to make the most of the current situation.

3. Stay positive

Enjoy the extra time you have with your family while ensuring that you are doing everything in your power to keep yourself and others safe. Know that these uneasy times will ultimately come to an end. In the meantime, focus on how to make the best of your situation.

4. Turn off the news if you feel overwhelmed

While it’s vital to stay informed on the situation at hand, overexposure to the news can result in making emotional decisions with your portfolio that you may regret later. It’s important to maintain a level head and a long-term mindset to get through this period.

5. Embrace the new reality and use your time productively

Remember that time is your most valuable asset, and taking on DIY projects at home can improve your quality of life while increasing the value of your property. When life picks up and time becomes scarce again, you’ll be glad you did.

6. Take advantage of short-term opportunities

While your long-term strategy may remain unchanged, consider alternative investment products to help produce additional income in the near-term. There are still assets with real value out there. Diversifying your portfolio with fixed-income investments can unlock additional income streams to help you get through this current period and potentially produce additional capital to re-invest in your long-term strategy.

Not sure where to start?

Alternative investments like those offered by Yieldstreet may be a great idea for certain investors. We give accredited investors access to alternative investments that typically have a low stock market correlation and traditionally have been unavailable to individual investors.

Anyone can create a free account with Yieldstreet by clicking the link below. Have additional questions? Reach out to our Investor Relations Team at [email protected].

Join Yieldstreet today to access alternative investment opportunities