How to Invest When the Market is Down
October 7, 2020 (Investorideas.com Newswire) Most people can agree 2020 is a surreal year that is changing the way folks approach everything, including the stock market. The market is down because of everything that's going on, but the following will help guide you through this strange market.
2020 Stock Market
The first thing you need to understand is the current stock market, and to do that, you have to consider the pandemic. There's no telling when this issue is going to be resolved, but it is affecting the stock market. The market is constantly up and down.
If you're interested in stock from companies that depend on labor, then those stocks are probably down. If the stock you are paying attention to involves large, mostly tech-based companies, then those stocks are probably high.
Labor has taken a major hit. A lot of people are simply not going back to work because social distancing is challenging. There are other reasons why labor is getting hit hard, but it all has to do with the pandemic and this country's inability to respond effectively.
Okay, so now that you know a little more about the stock market, it's important to focus on the stocks that are doing better. The tech-based stocks are sometimes called cloud stocks, and these are the ones you want to pay attention to. According to the experts at Money Morning, these types of stocks include things like "Big Data, Internet of Things, or Artificial Intelligence."
There is labor involved in these types of companies, but they work online, and that means most folks are working from home. The pandemic has also helped these companies rise since most people are staying at home. Most companies are relying on tech to do business with customers. Even schools are using their technology to introduce social distance education using the internet.
The more people get online, the more security is needed. Cybersecurity also relies on the cloud. There's no telling how far this industry is going to go even after this pandemic. After the pandemic is dealt with, a few people are going to be worried about going back into the world.
Stocks to Consider
While the market is down, the best thing you can do is focus on stocks that won't be negatively affected by what is happening. The following are some stocks you might want to consider:
Everyone knows Microsoft and for good reason. Here's a company offering tools that people need right now, especially folks working on a computer. A lot of the company's revenue comes from small startups, which tells you how important Microsoft is.
Of course, Apple is another big company you should pay attention to. The company offers everything, from smart devices, apps, and much more. The company is now investing in entertainment, such as shows and movies.
These are some companies to pay attention to, but there are many more like Salesforce and Twilio. Hopefully, you invest in the right stocks to make it out of the 2020 turmoil.
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