We are living in a world divided right now. Disagreements regarding vaccines, masks, schooling, and politics abound. But if there is one thing everyone could likely agree on, it is that COVID has changed everything. There is not one aspect of our lives that the fallout from the pandemic has not touched. This includes the stock market.
There is likely confusion as to how to navigate the stock market post-COVID. The narrative since early Spring of 2020 has been the downfall of businesses, the shuttering of companies, and the rationing of scarce resources. Fear is a prevailing emotion. When considering the stock market and investing, it is essential to try to put fear aside and approach the market with common sense and a knowledge of history.
Real Life Trading out of Nashville, Tennesee works to help people find financial freedom by mentoring them in all aspects of traversing the stock market. Real Life Trading CEO Jerremy Newsome teaches people how to safely and properly invest through a series of online courses. Jerremy himself has been learning about the stock market from the age of six. Encouraged by his father to seek financial independence, Jerremy set out to learn everything he could about investing and finances. Through Real Life Trading, he’s passing that knowledge on to everyone, from beginning investors to seasoned day traders.
The shifts in attitude and approach to finances that have come with COVID have are integrated into the lessons taught by Real Life Trading. The message may have been tweaked, but to Jerremy, the attitude towards the stock market needs to stay the course.
“When the term covid comes up, it elicits so many different emotions and then we mix in the word investing?” says Jerremy.
As alluded to above, there are always two choices when it comes to media. “Fear or optimism,” Jerremy says. He freely admits that he tends to skew his thinking towards the “historically accurate” positive side. Part of the challenge for educators and stock market experts like Jerremy is breaking through the fear-based media narrative and calming anxiety about investing in a potentially volatile market. He makes it clear on the Real Life Investing website that he is out to help people find financial freedom and ultimately live out their dreams. That’s a difficult sell in a post-COVID climate of fear of the unknown.
So what should people keep in mind when approaching the idea of investing post-COVID? Here are some quick tips from Real Life Trading that can help even stock market novices navigate easily.
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Don’t Assume
When the world was in lockdown, what was viewed on our television screens every night or in our social media feeds could sometimes seem downright apocalyptic. We faced empty store shelves, businesses closing their doors forever, and hand-wringing about what it all meant for the economy.
But, if we learned anything from the record-high surge that happened in the stock market in the wake of COVID, it’s that we should never assume that just because the world around us seems to be in turmoil, that the stock market is going to follow suit.
Have Your Eyes on History
The Spanish Flu devastated the world in 1918. Immediately following the pandemic, the Roaring Twenties ushered in a period of prosperity and positivity. The stock market crash of 1929 immediately following the boom years.
“Learn to enjoy the ride up while it lasts,” says Jerremy.
If history can teach us anything, it’s that the market will always fluctuate. Knowing history and having a sense of when it will be doomed to repeat itself will make one a wiser investor.
Learn How to Predict an Upturn
Stock market experts were predicting a stock market surge following the announcement of the COVID vaccine. Vaccine optimism did indeed have a positive effect on the market. A feeling that we would soon be “returning to normal” led to an expectation of economic growth. Seasoned investors made their moves based on this optimism.
Consider Rebalances Carefully
Rebalancing is the practice of periodically buying and selling assets in hopes of bringing a portfolio back in line with your goals or target asset allocation. Average investors may rebalance once a year, but in a post-pandemic market that may be fraught with unpredictable highs and lows, it could be prudent to rebalance quarterly. This allows you to keep a finger on the pulse of what your portfolio is doing as it rides the wave of the post-COVID tide.
Go Big or Go Home
It’s no secret that COVID disrupted the supply chain, leaving small businesses struggling to compete with larger companies with deeper pockets and more access to supply to meet demand.
When considering who to invest in, the bigger companies are faring better post-COVID concerning supply and demand. Don’t fear going big.
With unprecedented times comes unprecedented action. Real Life Trading uses its years of experience in an ever undulating market to educate and guide new and seasoned traders alike. They also offer chat rooms where people can create a community connection centered around trading. There they can ask questions, get support, and perhaps find the silver linings in times that can sometimes seem dark.
The way Jerremy Newsome sees it, we have a choice in this season of uncertainty. We can give in to fear and press pause on our dreams of financial freedom, or we can go forward with optimism, leveraging the tools of education and community support. It’s clear Newsome, through Real Life Trading, has found success with the latter.
