As I sit here and see the Dow Jones dip under 20,000 for the first time in four years, I realize that it will likely be the last time in my adult life I will see the stock market dropping this low. And it seems to only be continuing. While some young people may decry the president or capitalism or whatever else they seem to think ails them more than the actual pandemic happening, the truth is this is a great opportunity for them and they don’t even know it. That is why I have a request to make of those “zoomers” – now is the time for you to buy in.
The lucky ones already got this lesson in high school one way or another, but to the uninitiated this will be a critical lesson, and it applies to millennials with excess capital as well. This stock market is at an extremely low place, having almost wiped away all of the gains seen during the last three-and-a-half years of President Trump. But it will go back up. The stock market always bounces back from a crisis like this. That means there is a critical window for us to buy into the stock market. Best case scenario, you have a few hundred bucks sitting in your bank account that you can dump into stock, which is extremely easy to do online in the modern digital world. In fact, right now electronic trading is going to become the norm amidst the COVID-19 pandemic.
Where there is crisis, there is profit to be made. The dividends will pay out to you, quite literally as many companies with high-paying dividends are at some incredibly deep lows. You may have heard that in times of crisis when stocks plummet, the smart ones buy. It is in your best interest to start building up a good portfolio. I recommend diversifying your stock, meaning that you purchase from multiple different industries and companies so as to avoid putting all your eggs in one basket. If you don’t feel comfortable investing directly yourself, the option exists for mutual funds, a mass-investing opportunity that will seek out opportunistic stocks using the collective resources of its participants.
For those of you willing to partake more directly and diversify your own stock options, the following will be an analysis of the market at the time of this writing of the current state of stocks that ought to be invested in. For starters, airlines are currently suffering massively in stock prices, and are generally a safe bet as they are unlikely to all close without some government assistance. This choice is great for those of you wanting to get something at a very cheap value right now: UAL, AAL, LUV.
The next option is banks, as at this current point in time they are seeing stocks drop, and are usually the first ones to be bailed out. Bank of America (BAC), Wells Fargo (WFC), and JPMorgan Chase & Co. (JPM) are all doing terribly right now, and are in perfect picking positions. From there, the final recommendation I will give is to invest in restaurants, with McDonald’s (MCD), Chipotle (CMG), and Wendy’s (WEN) all dropping like flies and thus all wonderful buying options.
If anything, please take from this article that if there ever was a time for zoomers to invest in the stock market, this is that time. With the world in the tumultuous state it’s in, a bunch of zoomers buying into the market would likely help to stabilize it as people realize we are still looking to the future. Regardless, it’s time for this generation to take its shot and make like bandits, because any one of you could strike it big in a few years when the market comes back – and it will.
Even as future crises come and go, I highly doubt there will be any more chances to buy in at this stage of the market and at these levels. It could happen again, but as it stands, this could be a once in a lifetime opportunity. Best not to squander it. Save up every last penny you can, buy as much as you can, and start developing your future at one of the best points for it. Heck, the government might even make it easy for us, with the talks of handing $1000 checks to every adult American. At any rate, take heed of my warning and invest while the getting is good.
Disclaimer: I am by no means a financial expert and this should not be considered professional advice. This is only my personal opinion based on a rudimentary analysis of the stock market.