The coronavirus pandemic has ruffled the feathers of global capital markets this year, causing the biggest crash in stock market indexes since the 2008 financial crisis while the likes of oil, and even cryptocurrencies, have fallen to gruelling lows.
And while this has caused understandable panic amongst traders and funds, it has presented a number of key investment opportunities moving into the second half of the year.
According to Don Guo, CEO of Broctagon Fintech Group, there are a few factors to consider when assessing an investment in 2020.
He’s stated these include: “How long lockdown is likely to continue, new traders entering the market, demand for different types of assets and products and the possible impact of inflation on the markets.”
Guo continued: “While volatility continues there will be a plethora of cheap stocks and cryptocurrencies to choose from, as well as lower transaction costs. This won’t last forever, history shows us that recovery tends to be quick, and some countries are already beginning to relax lockdown measures.”
He also notes that as much of the world have either been furloughed or forced to work from home, an influx of new investors may enter the market, which could in turn peak interest in digital assets.
“As quantitative easing kicks in and inflation increases, crypto could also see an uptick in investor interest.” He added.
“With governments are forced to flood more fiat into the system to support businesses during the crisis, investors could turn increasingly to cryptocurrencies, which for the most part aren’t as reliant on government action. Should this trend continue, we could see bitcoin prices skyrocketing by the end of 2020, meaning those who had invested sensibly can use it as a hedge against the inflation of traditional currencies.”
And while Guo reiterates that nothing will recover in a “straight line” a lot of institutional investors will be sizing up opportunities as a result of relatively low prices across the board.
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Disclaimer: This is not financial advice.