{"id":3870,"date":"2020-09-28T00:04:11","date_gmt":"2020-09-27T14:34:11","guid":{"rendered":"https:\/\/adelaideprivatewealth.com.au\/covid-19-investment-opportunities\/"},"modified":"2020-09-28T00:04:11","modified_gmt":"2020-09-27T14:34:11","slug":"covid-19-investment-opportunities","status":"publish","type":"post","link":"https:\/\/adelaideprivatewealth.com.au\/covid-19-investment-opportunities\/","title":{"rendered":"COVID-19 investment opportunities"},"content":{"rendered":"
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COVID-19 sent shockwaves across the world and caused share markets to fall hard and fast earlier this year. While some panicked, savvy investors have been looking out for opportunities.<\/p>\n

So, what is it that differentiates the panicked investor and those who use a crisis to buy assets that become cheap overnight?<\/p>\n

As the legendary French biologist, Louis Pasteur, said, \u201cchance favours the prepared mind.\u201d If you can invest knowing there\u00a0will<\/em>\u00a0be crises that will temporarily reduce your capital (think the GFC, tech wreck, 1987) but remembering that these crises were also an opportunity to buy great assets at cheap prices, you will become a better investor.<\/p>\n

Here are five other bits of \u201cmind preparation\u201d you can do to turn the next crisis into an investment opportunity.<\/p>\n

1. Keep a long-term perspective<\/h3>\n

Unless you\u2019re a trader \u2013 looking to make money from quick profits – it\u2019s important to have a long-term investment view. We saw a major decline in share markets earlier this year \u2013 and a dramatic recovery. From the 1987 stock market crash to the bursting of the Tech Bubble in 2000, each crisis trigger is different and the time it takes to recover varies too. Recoveries can take months or even years \u2013 but history tells is that bull markets (periods when shares go up) typically last a lot longer than bear markets (where they go down).<\/p>\n<\/p>\n

2. Do your research<\/h3>\n

There\u2019s a lot of \u2018noise\u2019 about the current state of the market, so keeping informed and getting an in-depth understanding about where you\u2019re investing, is key.<\/p>\n

Here are just a few of the things you could consider when looking at listed companies in the share market.<\/p>\n