How have you benefited from the economic crisis and what about the covid-19 crisis? I am not referring to opportunists who practice the wrong way of doing business while many people are in crisis. This article is about investing in a time of crisis in a country or world.
This type of investment is only applicable to people who are prepared in advance, as it requires a lot of cash, such as buying land in a potentially low-cost area. Many people owed money to the bank and could not afford to pay the bank due to the covid-19 crisis, and they were forced to sell their land at a lower price than before the economic crisis. At the same time, many people have the same problem of losing income, they do not have the money to buy land, even if they want to, but for those who are ready and have a lot of cash, they will withdraw money. Profit from those purchases.
Can buy land, stocks and business, but for me most choose to buy stocks because buying land requires a lot of cash and some places have a lower profit margin than stocks. For example, buying land in times of economic crisis can earn back 25% to 40% of the capital by selling the land when the economy recovers, which is much higher profit from bank deposits. Take interest. Compared to stock options, risk analysis and practical possibilities, if it were better than buying land, I would choose to buy stocks. As a practical example, I bought a 10% stake in a publishing business, which resulted in a return of up to 120% in just two months. Some people may not believe this example, but when you invest in a high-end product business that sells their product for over $ 10 while costing less than $ 3.
Here are three steps you can take to begin the process of preparation for mediation:
1. Before the economic crisis
Before the crisis, people with a lot of money were ready to take advantage of the crisis. Most of their cash may be stuck in business or in private charities, but before the economy moves to its worst point, they try to raise cash to buy assets at low prices. Like the covid-19 crisis, it began to spread in China in late 2019 and by mid-2020 it had slowed down Cambodia's economy. The people who saw before the crisis, they are ready to create opportunities in the crisis.
Before the crisis, Covid-19, stock prices of food delivery companies, social media companies, media companies, online tutoring companies, online retailers, mobile payment providers, and some were cheaper later in the crisis. Explosions, as well as the rise in stock prices, mean that they can make a profit by buying them before the covid-19 spreads.
2. During the economic crisis
As the economy slows down, those cash-strapped people start investing their money in real estate, stocks and potential businesses at low prices.
Many plots of land and houses have been advertised for sale at low prices due to the economic hardship of the property owners, which is an opportunity for them to buy and sell at a high profit margin.
During the covid-19 eruption, many businesses suffered losses of core revenue, including tourism, aviation, schools, passenger companies, hotels, restaurants and more. The share prices of those companies have fallen, while others have announced the sale of businesses, meaning that they can take advantage by looking at the ability to buy shares or any business that is struggling at a low price, and they can predict that those businesses will Recovering after the crisis is resolved.
3. Post-crisis
After the crisis is over, carefully purchased assets at all low prices will quickly increase in value, they will recoup their cash and profits.
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