For anyone who’s been building a portfolio of investments, COVID-19 means bad news. Aside from the devastating health risk, the pandemic has also affected the financial situation. Fluctuations are the common currency on the stock exchange market. Additionally, many investors complain about loss of profits across their entire portfolio. Many landlords have not been able to collect rent payments from vulnerable tenants. Property flipping and sales have been temporarily frozen until better and safer times come. Even saving accounts have been affected as banks have reduced interests for all accounts. Additionally, digital investments are also at risk, as the sudden motion to go online has taken many institutions by surprise. In short, how can you know if your investments are safe?
Run analysis without using real data
Complex investment portfolios make it hard to spot abnormal activities without exposing your data. However, using synthetic data can help banking institutions, financial advisors, and investment management experts to detect fraudulent or suspicious activities that would otherwise have gone unnoticed. Indeed, as more and more people are relying on digital networks and platforms to keep track of their investments and income, the surge of online presence makes it hard to identify hacking activities.
Always consider all external factors
If you manage real estate investments, it’s a good idea to use the lockdown time to reevaluate your assets. Indeed, while property investments are typically safe, many prospective landlords and investors have faced devastating financial challenges. Therefore, you need to ensure your money is safe in real estate. Review all external factors that could affect your investment. For instance, vulnerable tenants that have been hit by the COVID crisis may affect your income right now. However, if those tenants are, otherwise on time for rent payments, it is worth sticking with them during the crisis. Unreliable tenants, however, are not a safe bet for your money. Working out your financing in the long term can help to understand the real value of each property.
Don’t make rash decisions during a period of uncertainty
As the stock exchange market is turning into a rollercoaster with highs and lows, it’s crucial to avoid impulsive decisions. Preparing a financial cushion can prevent dramatic consequences at the end of the COVID crisis. As worrying as things can get right now, you don’t want to try to outsmart the market to buy stocks on a low cost. Fluctuations are uncontrollable, and you’re at risk of burning your investment.
Surround yourself with trustworthy experts
What is the best course of action? Many investors feel at a loss as to how to react to the financial rollercoaster. Even experienced investors prefer to turn to professionals for support and guidance. Trustworthy financial advisors can help you to minimise losses. Now’s not the time to plan for gains. However, you can work with an expert to design the best plan to cut down financial drops. For the time being, financial stability is more valuable than growth, and it will put you in a better position at the end of the pandemic.
Looking after your investment when every financial and income-generating market is either frozen or fluctuating is an impossible challenge. However, you need to keep a cool head to focus on the essentials, such as protecting yourself against digital opportunism and money-costing factors.