With COVID 19, Indo China war tension and the oil prices tumbling to its all time low we are experiencing market situations like never before. In such situations it is difficult to asses where the markets are heading and its effect on global economy. It is further difficult to asses whether it is a bull or a bear run. Following are some guidelines as to how to go about with it:
Cash : The inflation rate is always increasing. It is impossible to asses where the inflation will be in such situations. Holding cash is traditionally considered a far worse option but it also depends on what currency is the cash held in. If it is held in the relatively stronger US Dollar then the risk is mitigated to some extent as the Dollar is a far more stronger currency than some other currency of the world.
Stock Market: With the markets in turmoil it is best to invest the least amount of money in Stocks unless you are an active investor and can spare the time to manage your money on a daily basis, otherwise it is easier to lose money than to gain money as the money will grow at a far lesser rate if manage by money mangers or funds as the cost of investing and managing is extremely high. It is always better to buy a separate term insurance and a separate market linked policy as both in a single policy can make you lose more money than you think.
Bitcoins: Bitcoins are a once in a life time opportunity as it is only with bitcoins that one can hope to have their investment increase multifold in this generation. However it is important to note that bitcoins are not legal in some parts of the world. Moreover there is only a 40 percent chance that they will give enormous results in the near future, however they can also go to zero if Government policies are not supported. If you can bet 2 to3 years of your income and have no fear of losing the money then it is a perfect instrument for you to invest in.
Gold: : Traditionally gold has forever increased its price for more than thousands of years. In some US and Indian money and financial markets stock markets have outperformed Gold, but if we look at the past few years Gold is at an all time high of more than doubling in price. Also it doesnt lose its value for generations to come. Gold is definitely as safe bet.
Cash : The inflation rate is always increasing. It is impossible to asses where the inflation will be in such situations. Holding cash is traditionally considered a far worse option but it also depends on what currency is the cash held in. If it is held in the relatively stronger US Dollar then the risk is mitigated to some extent as the Dollar is a far more stronger currency than some other currency of the world.Bitcoins: Bitcoins are a once in a life time opportunity as it is only with bitcoins that one can hope to have their investment increase multifold in this generation. However it is important to note that bitcoins are not legal in some parts of the world. Moreover there is only a 40 percent chance that they will give enormous results in the near future, however they can also go to zero if Government policies are not supported. If you can bet 2 to3 years of your income and have no fear of losing the money then it is a perfect instrument for you to invest in.
Gold: : Traditionally gold has forever increased its price for more than thousands of years. In some US and Indian money and financial markets stock markets have outperformed Gold, but if we look at the past few years Gold is at an all time high of more than doubling in price. Also it doesnt lose its value for generations to come. Gold is definitely as safe bet.
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