The first thing I did when the Covid19 pandemic started was to revisit my portfolio. I focused on my hedge, the asset that I know will store the value of my money. I knew early that the economy was going to tank big time. I didn’t know how long and how bad but I knew it was going to tank.
So, I took some of my risky investments and converted them to a hedge, gold in particular.
What it did was give me peace of mind. I knew I had the minimum amount of funds that will cover me and my family regardless of what happened to my other investments.
Here are other steps I took to make sure I don’t only survive the Covid19 pandemic but its aftershock.
1- I make sure I have enough cushion for several months of payments on loans. You know by now that everyone has debts. The more business ventures one has, the deeper that person is in debt. I am no different.
This pandemic taught me, however, that having a sound, safe, and flexible cash flow is not enough. I need to have enough cushion so that in case the economic distress gets worse, I won’t have ever had to default on loans.
2- I invested more.
There were a lot of uncertainties in the beginning of the pandemic but I knew one thing for certain. Inflation was going to be at its worst.
That meant regardless of the amount of cash I had, I was going to lose. The only way for me to survive is to invest and outpace inflation with my gains. Easier said than done, of course, but I knew that not taking a risk was just going to result in a certainty of loss. Investing would at least give me a fighting chance.
3- I blocked myself from the noise of media and social media
As soon as everything went on lockdown, investment and financial experts started their chatter. There were predictions of a collapse here, predictions of an asset going a bull run, predictions of this and that. I knew one thing though. Covid19 has never happened before. Anybody presenting any kind of data to support their predictions are just “distant comparisons” at best.
I stuck to my basics and that is diversification. Sure, I adjusted some investments but it was just as diversified if not more.
I suggest you do the same with the guidance of a financial advisor and extensive research. Revisit your portfolio, start investing, and make yourself future-proof.
And if you are ever interested in diversifying with gold, we can help. We have US-based associates that can answer your questions when it comes to gold and silver investments.