How to Stay Invested Profitably During Turmoil

Russia is not showing any signs of withdrawing from Ukraine, nor is Israel letting up on its war with Palestine. Almost every country surrounding China has border tensions with it, and many accounts are being reported of China planning to invade Taiwan soon. To further add to this situation, North Korea continues its quest to become a nuclear weapons nation, threatening South Korea every day. With such political unrest around the world, speculation of World War 3 erupting seems not that far-fetched.

But will World War 3 happen? Will the world again be at unrest with much graver consequences at stake?

Well, we aren’t here for political speculation. We are going to assume that this unfortunate event happens, so we that can see how an investor to stay invested profitably during turmoil.

Being profitably invested is going to be a hard thing to do during times of strife, but there are a few strategies you can implement to ensure your investments help you emerge profitable post turmoil. Here is what you should do:

Gold: Famous business magnate, J.P. Morgan once famously said this about gold, “Gold is money. Everything else is credit.” During times of turmoil, gold weathers all storms. Since its value is not heavily tied to a booming economy, this is where people hedge their money in testing times. It is a tangible, finite asset that is completely under your control. So, during a World War 3 situation, gold will be in high demand and its value will considerably increase. Many people got by only because of their gold investments during the 1st and 2nd World Wars, so it’s not going to be very different during World War 3.

Government Bonds: In this type of investment, you are lending money to the government, and they pay you back the principal amount and interest on it. Though interest rates are not very high, you are guaranteed to get back your money. Therefore, even though national and international markets may be in disarray, your money with the government in the form of bonds will be safe.

Savings Account: When the situation is complex, the simplest thing can be the answer. Keep money in your savings account, preferably in a nationalised bank, and rest assured at least your principal amount will be safe. Yes, you will get interest on the money in your savings account, but it won’t be high owing to the prevailing poor economic conditions.

Defensive Stocks: No matter what the condition of the market is, defensive stocks are always on the rise. These stocks belong to seemingly recession-proof companies. You also have to be smart about investing in such stocks, especially during war times. Stocks of pharmaceutical companies, hospitals, aircraft manufacturers, FMCG companies, water suppliers, electricity companies, fuel companies, telecom & internet companies, etc. are a safe bet. So, any company that deals with war-time necessities is a good option to invest in.

Of course, we all hope that World War 3 never breaks out, but is it always better to know about investing in the right places at the right time, so you can protect yourself, your family, and your investments from any upcoming turmoil. Investors always have to stay updated on markets and prevailing political situations around the world and plan their investments accordingly.