As more and more countries are starting to report their economic data, a very grim global picture is emerging. According to the Chief of the European Central Bank (ECB), Christine Lagarde, the world is staring at a severe and unparalleled global recession.
Almost all countries are experiencing the lowest consumption patterns in diverse businesses. The situation is tense in USA and in European countries, where growth rates are expected to plummet below, well into the integers.
Given the alarming nature of the world’s financial scenario, investors have seen billions of dollars being wiped out from the market. No company is a stable bet, no investment portfolio a stable option.
In this article, we will look at investment options. We will also look at how they have performed during the Coronavirus pandemic.
- Oil as an Investment Option-
No one in the world had expected a scenario where brands and producers would be paying someone else to stock the oil. News Flashes on television screens announced a situation, where oil was trading below zero dollars.
Investors who had pumped in billions of dollars in oil and gas corporations in the hope of getting steady returns amidst a global growth rate and oil requirements lost billions in a few days. Oil was one of the worst-performing stocks during the Coronavirus crisis.
- Gold as an Investment Option-
In addition to cryptocurrencies, gold was maintaining its level as an asset during the Coronavirus crisis. According to experts, gold was one of the better performers when it came to assets, which are still growing in value. This also reflects upon the instability of fiat currency.
CEOs of major Hedge Funds stated that gold as a standard of value has been around for thousands of years. This is why it is still maintaining its value even during tough times. However, the value of gold is not increasing.
- Bitcoin as an Investment Option-
If there is one financial asset, which shocked and surprised everyone in the last two months, it is Bitcoin. The year 2020 crisis saw Bitcoin rally hard to hit the $9K mark in the midst of the crisis. With the exciting new ‘Halving’ to be held on 12 May 2020, the crypto is further expected to rise.
This has made many people become interested in Bitcoin trading and crypto exchanges all of a sudden. People are flocking to platforms like prime advantage to invest in Bitcoins and earn handsome profits in the near future. The year 2020 is going to be a watershed year for Bitcoin in many ways.
Which Financial Asset should you invest in post the Coronavirus pandemic?
It does not come as a surprise that many investors and hedge fund managers have moved their investments from traditional stocks to cryptocurrencies. Bitcoin has seen a massive influx of trade and exchange in the past couple of months. People are also curiously looking on as to what happens post the epic Halving of Bitcoins mined.
History has shown that Bitcoin rises after every halving is held. In history, there have only been two instances and in both of them, we have seen an increase in valuation. Oil is a very bad investment option in the current world. Demand for oil is not expected to rise anytime soon, at least in 2020.
Almost all nations and refineries have already stocked up on their reserves. This means that from an investment standpoint, people should be wary of oil stocks. Gold, the oldest standard in circulation continues to be a safe option. However, it is limited to being a safe option. It is not expected to grow in valuation or return profits in the near future.
If you are looking to diversify your portfolio, you should seriously think about investing in cryptocurrencies and the entire ecosystem surrounding them.