7 Fine Places To Invest Money Right Now (in The Coronavirus Age)

Rich FettkeLast Updated: October four, 2021

Summary: In this article, RealWealth® Co-CEO Rich Fettke stocks his perspectives at the great locations to make investments money proper now (in the Coronavirus Age). Learn approximately financial suggestions to protect your self throughout those tough times in addition to potential deals for traders.

What Are the Best Places to Invest Money Today?

With the outbreak of the Coronavirus pandemic sweeping the globe, lots of us are asking: wherein are the quality locations to make investments cash proper now? It’s a tough question to answer given that we've got never been in this case before. The whole global is set to head on a “time-out”. Even if there may be a therapy soon, and existence returns to quite everyday, matters may also never return to exactly the way they had been. And a few even trust the air has come out of the bubble and that we are maximum in all likelihood headed for recession. 

In my opinion, the excellent places to invest or preserve your money right now due to Coronavirus are in (1) gold and silver, (2) coins in a secure in your home, (three) a most of $250,000 in FDIC insured banks, (four) Bet in opposition to industrial lending, (5) farmland, (6) less costly apartment homes, or (7) paying off your private home. I’ll additionally talk about useful economic tips for the duration of those difficult times. 

Here are 7 of the high-quality locations to make investments cash right now… in the age of Coronavirus.

I advocate which you invest about 10% of your net worth in gold or silver. The purpose for owning gold or silver, is that it acts as an insurance coverage. That is, real, bodily gold, no longer ETFs. It’s first-class exercise to preserve your gold and silver in a safe storage by way of a good corporation. It’s also a great concept to preserve some bodily gold for your personal secure at home for worst case scenarios. 

If the marketplace crashes and all other shares are lost, gold need to follow historic tendencies and move up, or as a minimum hold maximum of its price. Gold is a excellent manner to guard yourself from dropping everything for the duration of these instances of uncertainty. 

A few tips for a way to shop for gold:For garage Kathy and I use: https://hardassetsalliance.com/For shipping of bodily gold and silver we use: https://www.jmbullion.com/

But there are numerous options available as nicely. These are just those that I’ve researched and discovered are first-class for our wishes.

You should also have a very good sum of money on-hand. I’d propose which you hold round 10% of your net worth in a safe container at domestic. This may seem like an outrageous quantity to a few, however we’re in uncertain territory right here. The closest thing to the Coronavirus pandemic we’ve visible is the Great Recession of 2008. And returned then while the whole lot in the finance world become in disarray, allegedly banks had been just hours far from freezing all debts briefly in which case no one would have get admission to to their cash. In truth, this is exactly what befell in Greece while their economic system crashed, inflicting financial disaster.

Just remaining week, I visited a bank to withdraw a bigger amount of cash. They told me the most I ought to withdraw became $five,000! That’s why having coins in a secure at domestic is a top notch coverage policy in case this happens. Plus, on account that banks pay almost 0 hobby, it’s not like you will be lacking out on all the ones hobby payments.

#3 - FDIC Insured Banks & Accounts

Spread your cash out in smaller amounts in FDIC insured banks. Never positioned extra than $250,000 in someone bank, because the FDIC will handiest insure “$250,000 consistent with depositor, according to insured bank, for each account possession class.”Checking accountsNegotiable Order of Withdrawal (NOW) debtsSavings money owedMoney marketplace deposit accounts (MMDA)Time deposits together with certificates of deposit (CDs)Cashier’s tests, cash orders, and different legitimate objects issued through a bank

What the FDIC Does Not Cover Stock investmentsBond investmentsMutual budgetLife coverage rulesAnnuitiesMunicipal securitiesSafe deposit packing containers or their contentsU.S. Treasury bills, bonds or notes*

*These investments are subsidized by means of the total religion and credit score of the U.S. government.” [Source: FDIC.gov]

However, it’s essential to be aware that FDIC insurance may change if COVID-19 results in a complete monetary meltdown… 

In the beyond, in the course of dire circumstances, the authorities has adjusted how tons the FDIC could insure. If our countrywide economic system continues to decline with the outbreak of Coronavirus, there may be a small danger the authorities should exchange how lots they'll insure, or how they'll insure it. 

Your best bet is to have your cash in big banks (like U.S. Bank & TD Ameritrade), because they have tons of capital. In fact, lately the Fed stated that huge banks have $2.nine trillion in excessive great liquid belongings, plus $1.3 trillion in not unusual equity. 

Since the Great Recession of 2008, regulatory minimums and buffers of capital and liquidity have been raised extensively. According to the Fed, “These capital and liquidity buffers are designed to assist the economy in detrimental situations and permit banks to continue to serve households and groups.” In latest days, the Federal Reserve has launched limitless QE on the way to hold the banks liquid in those uncertain times. They have also reduced reserve requirements.

Financial expert and writer, Harry Dent advised looking into a brokerage account at Ameritrade.

#four - Bet Against Commercial Lending

Many making an investment specialists are saying the U.S. industrial real property marketplace is going to implode, just like the housing market did in 2008

In an effort to include the spread of the Coronavirus Pandemic, many meetings and events were cancelled or postponed indefinitely, affecting the U.S. lodging, journey and tourism sectors. Additionally, closures of retail centers, restaurants, and office homes has grow to be significant.

Because of this, business real property may be in massive hassle. Billionaire investor Carl Icahn explained that the 2008 housing market bubble is happening all over again because of loans made to purchasing shops and other retail centers in 2012.

Many banks offered mortgages on industrial real estate, and “once they did the ones mortgages, [the banks] sliced and diced them and placed them in some thing called a ‘CMBX,’ an index.” They then offered their clients bonds in opposition to those mortgages.

According to Icahn, the motive COVID-19 makes this one of these massive issue is due to the fact industrial real estate will in all likelihood default on these loans because of their latest closers.

Consequently, “[a] lot of those bonds now are in grave threat…it’s like promoting coverage to a person who’s going to go to the electrical chair in multiple months.”

Icahn also believes (and I agree) that whilst the Coronavirus may additionally have catalyzed the market’s preliminary drop, it nevertheless has a lot farther to fall. 

Long story short: now isn't the time to spend money on business actual estate. It’s the time to wager in opposition to it. One manner to do this is to spend money on Inverse Real Estate ETFs.

A latest record via Hancock Natural Resource Group showed that there could be extensive monetary effects from the Coronavirus. However, with the constant demand for food, agriculture commodities are expected to remain greater stable than others.  

Our employer owns 800 acres of farmland in Costa Rica where we planted over 10,000 fruit bushes and a totally operational farm based on reducing side permaculture practices. We are also building a residential network for folks that prefer to live close to the food they develop, with clean air and lots of fresh water streams and waterfalls. For extra data, you may visit www.RiseCostaRica.com or be a part of our network for greater statistics on a way to very own your personal parcel of farmland.

A few more approaches to spend money on farmland:AcreTrader (An on line platform that allows you to buy stocks in farmland)Farming Equities (Crop Producers, Seed Equities, and many others.)Commodities (ie: Soybeans or Corn)Farming Mutual Funds & ETFsFarming REITs

Due to the Coronavirus, increasingly more people are rethinking how they would like to stay. For instance, being cooped up in a New York City apartment during a quarantine is less than ideal. 

Demand for single circle of relatives homes appears to be growing as town citizens move out to the suburbs if you want to have greater area and again yards. There’s also nevertheless a big loss of supply in the less costly housing market.

Generally in the course of tough instances, greater humans are forced to rent, which could provide a fantastic opportunity for buyers seeking out condo profits from unmarried own family houses.