Should I Start Investing Now?

You might have thought that you were going to start investing this year then COVID-19 made the global economy and markets to crash. Dozens of financial commentators are talking about the real possibility of a global recession, local industry players are saying that the Malaysian economy is going to need a few years to recover, and that the job security of many is under threat with pay cuts and cuts going around.

So the real question is why invest now?

Here are a couple reasons that this time could be a perfect time to start investing. FYI, please look at your own job security and financial situation to be as certain as you can that investing is a wise course of action as many people are under financial belt-tightening. 1. Buying Cheap Now Although COVID-19 is threatening major industries such as Airlines and exposing their underlying weaknesses, COVID-19 is making investing relatively cheaper.

There are a range of sectors and regions that are dropping in price but whose value is still strong and consistent.

Getting more bang for your buck is a key way to being an successful investor and now is a unique opportunity to get started.

Do the due diligence in terms of researching sectors and regions if you are interested in Unit Trusts or Robo-Advisories or individual companies if you are more inclined to stocks or bonds.

2. Markets Always Recover

With all the rhetoric about the financial crisis and potential recessions, markets and economies have always recovered. You only have to look back at the most recent 2008/09 Financial Crisis to see how far and fast the US Stock Market recovered to new heights.

Annualised Performance of 2008/09 Till 2019 of S&P 500 (http://www.moneychimp.com/features/market_cagr.htm) Average Return: 10.90% Recessions and times of financial pressure not only is a time of retrenchment but only a opportunity for well placed businesses and whole sectors. No doubt we will see established brands and new entrepreneurs take advantage of the situation to grow and innovate their business for an age that is putting digital over physical.

3. It Might Go On For A While Nobody really knows how long the pandemic will go on as well as the second-order effects of the pandemic so the economy and markets might be down for the long term. You could start creating a strong base for your portfolio at a cheap price for an extended length of time which could magnify your returns in the long term.

With many investment platforms offering an auto-deposit option, you can consistently invest in this buyer's market to slowly but surely grow your portfolio in attractive asset classes to reach your long term financial goals

Please Read: https://www.cnbc.com/2020/04/01/investing-advice-where-to-find-investment-opportunities-in-a-downturn.html