Topic: Capital preservation and investing during and after the COVID19 crisis (Read 454 times)

In the current economic system, we cannot force the rich to channel their money to the poor. But we can begin to break the chain of money flow from the poor to the rich (from the bottom up) through the consolidated bottom of the pyramid and stop saving and borrowing money in banks with the interest system.

Banks with debt and interest are the means of rake out of wealth by the super-rich to get richer with the majority of the middle and lower classes of money. By stopping saving at the bank, the flow of money that sustains the rich is also reduced. Through CBoP (consolidated bottom of the pyramid) the bottom of the pyramid has been used as the foundation of the business group market for independent change so that money only revolves around the bottom of the pyramid and raises the welfare of the groups at the bottom of the pyramid. A concrete example is shopping at a traditional market close to your home, not shopping at the supermarket.

Well, the money should have always gone down but the world we are living in makes the rich live with the other richer and poor live with the other poor so it becomes very difficult for the money that rich has to go to poor.

Yeah, the general increasing of economy is very important but at the same even if the general population is doing better compared to past (they are not) that wouldn't really change the shifts from the poor to rich, since the money of the rich rarely ever goes to the poor. That is why people with money increases their money, they become richer and richer, maybe some rich people get poor eventually for doing some wrong stuff, but rarely ever a poor becomes richer.

Don't get me wrong there are examples of regular folks becoming super rich, even though he and his family wasn't poor at all and they were well-off, Mark Zuckerberg became a billionaire before 30, so its still possible but we are talking about 1 in 7 billion, so not a big chance.

Right from time my investment has been in Gold and Bitcoin. I started my first investment in Gold, and I invested in it for a long time before I got to know about Bitcoin. Bitcoin is the second investment I made, before I started investing money in a few altcoins that I believe are really good. These assets are really doing well at this time of Covid-19 outbreak. Imagine that I was buying oil lol . I would have been regretting by now.

You do have a good point there. This is a time that a lot of people are looking for money that will sustain for long, and many lost their jobs when this outbreak started. Some countries are starting to ease the lockdown, let’s see what’s going to be the outcome of it.

It goes down to whale. Savings from the poor at the time of plenty is difficult and hard now that isolation is all around and government isn't really able to take care of the need of the people. Investment now is a whale business not the poor for now.

In the face of an economic recession, having cash is important. CASH IS KING. During the economic contraction in the direction of slow down or tight money, the most powerful is cash. Where there will be many opportunities because many will slam prices or those who are caught in the trap of interest because interest-bearing loans will surely die slowly. And the savior is cash.

So if we can predict an economic recession, we should have started selling assets that were not productive last year. Those who can read the situation will hibernate and hold cash. For trading, a low hanging fruit business will be chosen, namely short-term business action, fruit that is easy to pick and straight out, exit.

Miners do not generate such a large number of bitcoins that it can affect the price of BTC. But I expect an increase in the value of bitcoin for the reason that the generation of BTC was not stopped. Miners should make a profit for their work and this should be understood by all participants of the crypto community.

This! I'm completely agree. Also, this situation is not going to end soon and many people with savings can't wait till the raise of bitcoin when all of this ends, at least that the pandemic situation leads to an increase of working-from-home activities globally and with it the demand of bitcoin.causing an increasi in its price, which is a possible escenario but uncertain yet

What I do recomend, As mate said, is to look for the oportunities and those that benefits your current situation. If you need money return in a short period of time, then try to invest in activities that are arising with this situaion in your local comunity, with constant flow.

The profits won't be the highest, but will be constant and by the end of this crisis hopefully you'll be settled 

Whenever I see a bubble burst or a crash or anything that basically causes the banks to go down and money to be lost and governments to actually give away free money to big corporations I remember what Warren Buffet did. Dude basically bought out a HUGE part of Bank of America when it went down after 2008 but realized that they were not really an investment bank the size of others, it was more of a commercial bank at a huuuge size and they weren't doing all that horrible neither, so he bought huge sums of stocks from them and also lend them money in billions to cover up their quickly needed debts with a decent sized interest as well.

What happens is, he got his money back from the lending with interest, plus he got stocks for it as well when they couldn't and bought even more stocks. Of course with his help Bank recovered and became great again, yet that only worked out well for Warren as well . So, I always remember to see the opportunities in crashes.

Do not rush for making your decisions on stock investments because the corona outbreak is not yet over which means you may end of catching a falling knife. I mean there will be no clear signal for those stocks has already bottoming out and also there is no guarantee about recovering of price levels nor about any quick bouncing back of entire markets.

I guess it would be a good idea to be sticking with crypto investments rather than looking for new opportunities from stocks. Because, we can be sure about cryptos to be resuming its bullish rally at any time soon whereas stocks are not showing any such assurances except few sectors like retail and fianance.

thats good because we can learn something on the link given by the op  .

 this is a good tip for those who are newbie on investing scene  . indeed stocks are crashing and other offline assets  so they could be good for investing  but lets not forget cryptos too because cryptos are also crashing as well but the good part is that cryptos can recover faster than those previous assets we talk about  which make them good for those people that are itching to earn fast   . people are looking for ways to earn quick these day because they need the cash to buy food .

Like surfers now our country is facing the first wave of the corona pandemic, the second wave after the pandemic we can overcome and is certainty is the economic recession. While the third wave after the economic recession is the continuation of the war between China and the United States. When the pandemic began, the United States crossed 24 countries in the list of developing countries to become developed countries, the majority of which were OBOR partner countries in China. With this deletion, many countries will automatically lose the American market due to less competitive prices.

The governments of each country must be careful in developing new economic foundations after the pandemic effect. The first step is to absorb as much labor as possible to avoid chaos due to a starving stomach and the sector that can suck up labor the fastest is small and medium business enterprises. The government must focus on driving small and medium businesses, such as simple restaurants. The government can work with food delivery e-commerce companies to get the top 50 simple restaurant data to be directed to open branches in various cities or regions so that a lot of workers are absorbed and the economy starts rolling.

Let's just say one outlet needs 25 workers multiplied by 50 restaurants multiplied by the number of branches to absorb workers very quickly, not to mention other sectors that support the restaurant such as delivery raw materials are also alive. All that is left is for the government to carry out a socialization campaign to improve the people's economy.

But at the beginning it was also afraid to invest in bitcoin at the beginning of the same bitcoin decline, which was quite severe even for the current recovery is also still not declared stable because the whole 10k is the price at which bitcoin will look forward to halving this month.
For the crisis all industries also experienced the same thing because co-19 so there are still those who have survived any crisis from their finances (maybe) its huge reserves at a time like this.
If it is for small people then it is very painful where there is no more reserve to buy when prices fall.

For me, I think it is better if we treat this pandemic as an opportunity to manage our money and invest it to those valuable things. We need to take this chance to become ready and prepared after this quarantine, when we now want to engage in an investment. It is not that easy to handle and manage businesses as it is very complex and you really need prior knowledge and advice just to become successful.

You also need to have a goal, you need objectives and target so that you have something to look for, and you need to have a reason why you are doing business. You should take it seriously and make it as one of your priorities in your life. Capital preservation will help you get more profit unless you will work hard to become an effective investor.

In this time of crisis it is a good oppurtunity to make an earning by investing with a capital, but keep in mind that what you need for your capital is a money that you do not need and also atleast have an emergency fund because you will never know what happens next. According to the article, I agree with the investment oppurtunity in stocks right now and I hope that you will do the same too. Also, watch out for real estate because some if not many will surely sell their property at a bargain price which was also mentioned at the article.

Crypto market might be also affected by this pandemic crisis but i am confident to say that we are not affected that much. Bitcoin price is still stable and most of the investors still prefer to invest in btc rather than putting their money in gold or in usd. The profit may be less likely to happen this time but with its high volatility, once the price starts pumping, profits will also be on our way too.

I still remain a supporter of the fact that due to problems with the global economy, and also because of the crisis around the world due to the fault of the coronavirus, I am sure that cryptocurrency is one of the best investments.  The fact is that any business today is at risk and therefore, to minimize risks, many businessmen and investors can invest in cryptocurrency, which in any case, after a while, increase their capital several times due to their volatility.  I believe that the coronavirus pandemic can positively affect the entire cryptocurrency market.

It may not be deadliest but it certainly is the most infected in the recent memory and economic crisis is quite real because there are many companies who are not making any profit right now that will eventually affect the economy one way or another.

I am not saying it will affect horribly or destroy the nations and what not but to say that its a hoax would be disingenuous as well.

I can name at least 5 sectors it will affect starting from airline industry, hotel business, technology, car industry and food industry, all of these are getting hit pretty hard right now, to say that they won't be affected or it won't have an impact on it would be moronic. Considering these sectors have thousands of people and those thousands of people take care of other thousands of people, we are talking about hundreds of thousands of people being affected.

Considering the crypto market going down, now it is wise to preserve till the market will stop going down.

yes we must have to secure some cash first before putting money on assets for investment because we dont know if when the crisis will last but if ever the crisis ended  , i think our assets can guarantee an increase and can guarantee a profit with us  so we shall not ever touch them too early   .

you just need to budget the money that you have and besides our local government do something to help us like providing food packs that includes rice , canned goods , etc which we can consume   .

Those assists dumped due to COVID-19 that's assists would give you good return when we would come out from this COVID-19 epidemic. You have to do your own diligence to determine where you may invest, it would crypto or share markets & real assists like gold. But remember, it's quite dangerous to invest on current circumstances because we don't know when we may come out from COVID-19 epidemic. Perhaps we would need real cash during this epidemic to protect our families from hunger.

I think that we can invest only in obligations right now

This is only something that people who are not struggling from the crisis can think of , and if I remember correctly it is all of the population except the rich people and the people who are involved in the marketing of hand sanitizers and masks .
This is indeed a very bad situation to think about investing but at the same time we cannot outlook the fact that it is also the best time to buy shares and all , because the market is down , it will go up but it will take a while .
Who can do it , does have an amazing opportunity in front of them .

People now do not think much about investing side because they care and focus on preventing the Covid-19, and how they can protect themselves. But for some people who have big money, maybe they think about how they will invest their money. For people who familiar with investing, they can easily choose and buy gold as the investment because they believe that gold has value, and the price is not down too much. But for people who want to search the other way for the investment, they will use the internet to find what type of the new investment, and if they find that bitcoin can be the next investment type, they will use it.

But they will search for more information about the volatility of bitcoin because the volatility is one thing that they may concern, and they don't want to see their investment value will get down anytime.

I think that it is worth paying attention to 2008, when the whole world was mired in the economic crisis, and at the same time, the Chinese government managed to achieve very good economic performance in their country.  It seems to me that the same situation awaits us, when the economies of each country will suffer because of the coronavirus, and at the same time in China, which has not yet been able to overcome the problem of the coronavirus in its country, it is already starting to export essential goods to other countries, medical equipment  and other goods that no country can refuse.  Because of this, I believe that the next economic crisis will affect all countries except China.  As for the cryptocurrency market, throughout the entire existence of Bitcoin and other cryptocurrency rating cryptocurrencies, it is cryptocurrencies that are one of the most popular investments and I am sure that in the impending economic crisis, interest in cryptocurrencies will rise even more.

Investment in the real sector can be an alternative choice in these conditions. In conditions that are completely uncertain and full of pessimism, I suggest colleagues, not like investors in general who only wait and see, I suggest paradox thinking and dare to take risks. If other entrepreneurs try to do cost reduction we must focus on growth. Perform proactive responses to market needs and capture market momentum that is currently quiet so that competition is not so tight.

After China succeeded in overcoming the pandemic, now China began to stretch to rise. We pull the simulation, if the lockdown is opened, Hubei is opened as well as Beijing & Shanghai will the Chinese production be 100% direct, of course, it will take some time because China is a producing country & the supply market has not healed or is in the recovery stage. So during the recovery stage, each country fighting the coronavirus will not go fast because there is a process of re-acceleration in the production process and of course the priority is domestic consumption.

Exports or imports may be limited or even very small, even if imports are only for the energy sector. So after the pandemic effect, if we can capture the momentum as a good opportunity to invest in the real sector. The sooner a country enters the pit stop (at home only) the faster the curve reversal process begins. For additional information, since yesterday I have started to get regular export requests for conch shells to China which will be used as raw material for shirt buttons. This shows that the Chinese economy is starting to move.

Here is my tip, you can invest right now when you can because there are a lot of new and low priced stocks right now which is a gold oppurtunity if you want to earn be it long-term or short-term investment this is the right time. If you don't do it now then the price will eventually recover and that will make it a little expensive for you to invest. And also invest in what you love and what interest you the most.

I believe that bitcoin is still one of the best kind of investment this season because people are kind of letting go off their coins because of fear. Putting some money in now will be good as China is beginning to start there business again, more countries too will join in no long time market will start to bull.

I did not write about what is good investment or something like that. I wrote what is a store of value and what is not. Silver is not so as Bitcoin is not. Bitcoin might be one day. Might or not, only time will tell. Definitely not today.

I think Gold is a must-have. Silver if you think it's undervalued, and Bitcoin if you have a bullish thesis on it (definitely less of a track record than Gold!)

--
Gautam

Hey,
       Author here. Pretty much agree with what you're saying USD is good to have. Gold is good to have as well. Silver if you think it's undervalued (I do). Bitcoin has done well since the liquidation of weak hands last month. I'm probably more bullish on that one.

--
Gautam

If you ask me I would say that Bitcoin is already a good choice. You can then add gold, silver and other solid investments to it. The price of Bitcoin did go down during this pandemic, but what matters a lot is if it’s still going to recover and the answer to that is a yes, the price of Bitcoin will go up after all this is over. So, now is like an opportunity to invest your money at a cheaper rate than what you’re going to get it in the future.

There will be a time when the price of Bitcoin will go up and those that didn’t invest now will start regretting why they didn’t buy it, but they had the chance all this while and still don’t want to.

The author made the article as vague as possible without really touching deeper into his topic.


This was his whole point in the article when he talked about the "Financial Well-being" of a person and in the views of someone who even knows a little about investing they already know about what he is saying. What they don't know of course is where will these opportunities is the best one to pick which he didn't talked about in the article. Bottomline is I didn't get anything new or learn something new just by reading the article as it lacks content and everything he have said is something I already know.

Sound like a tip but it is too general. If everybody knew what is "dip" then who would be willing to buy at high? In the whole year 2018, today's dip is tomorrow's high. It's a lesson for current market situation. No one knows when the Covid-19 pandemic ends. Until that time, buying is a risky decision. A little technical analysis knowledge is needed in this case for short time frame trades. However, if you believe bitcoin will eventually reach USD 30k or 50k in 2021 or 2025 then buying now or tomorrow doesn't much matter.

These investors who will buy securities managed to sell them in time at the very beginning of the crisis. Because they usually do not keep their capital without investing in the business. And now they have the opportunity to buy back previously sold securities, but at a lower price.

Well, most businesses will have hard times and some businesses will be affected later by this since they're funded indirectly by some of those that are in trouble now.
All in all, it's very difficult to find something that worth investing in.

Then, the rule tells you should only invest what you afford to lose. And nowadays the "buffer" you should keep has to be bigger (for longer period).

I think that the ones who have funds for investing will wait and keep their eyes open. And when a business is getting into difficulty or simply the shares value drops significantly, then they buy.
So the rule would be: buy the dip or wait if there's no great opportunity now; it may come tomorrow.

From asset that you meantion the only one serving as store of value is gold

This sums it up:

The headlines today are pretty dire indeed:


During the immediate liquidity crisis, USD is the obvious choice. Silver and BTC haven't held up particularly well in comparison, although gold has held up okay. I think precious metals and BTC will both rally in the recovery stage (think 2009) but as long as stock markets are still in the dumps, USD is the safest bet.

Confused on what to invest in during the COVID19 crisis. The founder of Indra Crypto Capital breaks down in a simplified way how to best protect your finances and position yourself.

https://medium.com/@cryptohayek/covid-19-and-your-financial-well-being-346dc20dc64f