5 Ways to Invest Wisely During the Corona Virus

Image by William Iven

Article originally posted here by The Faith First Advisor

by Eric Schrum

1. Don’t panic sell your investments

Dalbar recently released a report that is striking. Since 1988 the stock market has returned on average 10% per year. Stock investors returns during this time…averaged a whopping 4.1%. Incredible. A large reason why is investors greatly lagged the market is their tendency to ignore professional advice and panic sell when markets drop, only to buy stocks again when the market rises. Stick to your financial plan you’ve made with your financial advisor and do not panic, even when things look scary like they do now.

2. Have Faith don’t give into fear.

John 14:27 “Peace I leave with you; my peace I give you. I do not give to you as the world gives. Do not let your hearts be troubled and do not be afraid.” Fear is our enemy in times of crisis and make no mistake, we’re in a crisis. As Christians we are called to not fear, this means making wise decisions when it comes to our investments and wealth even when our gut feelings are telling us to panic and take shelter.

3. Stay with your long-term financial plan

Ron Blue likes to say the best decisions we can make are the ones with the longest perspective. A good financial plan will take into consideration bear markets like the one we’re experiencing right now. If you find yourself wanting to deviate from your financial plan, ask yourself “Has my life situation changed?” If the answer is no, stick with your plan.

4.Keep an eternal perspective

God owns all things, including our money! If he sees fit to allow the market to drop 35%, who are we to question Him? Our response is to keep in bearing the fruit of contentment; knowing our peace doesn’t come from bull markets or the size of our IRA account. We know all things work for the good for those who love him.

5. Take advantage of the bear market

There’s a great quote attributed to J.P. Morgan getting a lot of traction recently “In bear markets, stocks return to their rightful owners.” I love that quote. This could be an opportunity to put to work the cash you’ve had on the sidelines waiting for a pullback in stock prices, rebalance when stocks are off all-time highs, or tax-loss harvest. Speak to your advisor about wise proactive action you can take during this time.

An important thing to keep in perspective is that there are much more pressing things happening in the world right now than the balance of our investment accounts. Lives are being lost, millions are out of work, and many are very afraid. Perspective is everything and we have the opportunity to minister to our neighbor in a way that points to the hope we have.

FOR MORE INFORMATION ON COVID-19, PLEASE SEE OUR PAGE HIGHLIGHTING SOME OF THE BEST RESOURCES OUT THERE FOR FAITH DRIVEN INVESTORS & ENTREPRENEURS IN THIS SEASON.

Interested in investing with Eric? Visit www.schrumpw.com/contact-us/

Investment Advisor Representative of Spire Wealth Management, LLCAdvisory Services offered through Spire Wealth Management, LLC, a Federally Registered Investment Advisor. Securities offered through an affiliate, Spire Securities, LLC.  Member FINRA/SIPC