Best Shares to Buy in 2020

Best Shares to Buy in 2020

Written by: PaxForex analytics dept - Monday, 27 April 2020 0 comments

Coronavirus panic has invaded the world financial markets: stock quotes are falling at record rates.
It looks a bit scary, but if you are a long-term investor, what is happening can be considered as a unique opportunity that arises once in ten years.

By the way, the U.S. stock market showed consistently strong results after the 2008 crisis, allowing investors to earn +269% of real return or 12.6% per annum (including dividends and inflation) over the 11 years from early 2009 to late 2019. For us, it means only one thing – now is the best time. So, today we suggest you have a closer look at the current situation from the investor`s perspective and see what are the stocks to buy now.

Why Buy Shares in 2020?

Most investors are likely to understand that the capital market collision provoked by the COVID-19 pandemic is, in retrospect, going to be the greatest possibility to get shares across a generation. But it still doesn't make it any easier. As it was throughout the economic crisis twelve years ago, nobody can tell with 100% certainty what could follow alongside.
We all know that the U.S. has not yet seen the worst if we speak about coronavirus problems. Considering the experience of other countries that were affected by the coronavirus outbreak earlier, next month or two may bring more bad news than good news. But more importantly, we also know that the problems are temporary. The number of new COVID-19 cases in China has decreased. It's going to happen in the United States as well. The economy will recover as soon as concerns about the pandemic have subsided. However, we do not know how long it will take for the wave of diagnosis of COVID-19 to decline. No one knows if the state stimulus packages will be of any help. And no one knows for sure if the stock market will continue to fall, and if so, how much.

Based on previous experience, buying the stock right now is a good idea for investors with a long-term perspective. Knowing that the American and world economies will recover should allow you to buy stock and feel good that you will make a solid profit over the next decade.
On the other hand, those who know about it make it obvious that keeping a little cash on the sidelines to invest later is also a sensible step. We do not know how long the coronavirus crisis will last or how much longer the stock market can fall.

Holding cash to purchase shares at possibly sale prices seems right.

So, the right answer to the question, whether you are buying stocks now or waiting a little longer, is "do both". This approach should increase your chances of winning in the long run.