Coronavirus: Recommendations to invest in stocks and companies – Financial Sector – Economy

“There is no evil that lasts 100 years and no body that resists it.” This phrase, which was often repeated by grandparents, takes effect today amid the covid-19 pandemic that has hit the world economy and markets hard.

For analysts, this is precisely one of the factors that play in favor of investors in a situation like the current one, where the prices of certain assets are below their potential value, which may not be for long.

Only actions in Colombia 28.3 percent have been devalued so far this year, while public debt (TES in pesos and UVR) registered average falls of 109 and 71 basis points in March alone, respectively.

(Also read: ‘Workers will be the first to watch over construction companies’)
.
“Past crises have provided historic investment opportunities in mid-market equity markets and long-term, taking into account the recovery that preceded them ”, warn Casa de Bolsa analysts.

A vision shared by other experts, who also consider that if you want to take advantage of the low-price season offered by the market, you should not lose your head, you should act wisely and seek the advice of an expert, since the recovery of Markets will not happen overnight, but will happen gradually.

Although there are those who consider that with the prevailing uncertainty it is best to keep the conversation safe in a savings account or in a CDT – the balance of savings deposits grew 8.9 percent at the end of March – others continue to see opportunities.

“The logic of this option is that many investors prefer a low yield to expose their resources to any type of new devaluation. The decline distresses some investors, but others, with a longer-term horizon, they are calmer, ”says Andrés Langebaek, director of Economic Studies at Grupo Bolívar.

In terms of investments, the market offers a wide range of opportunities, including real estate and the capital market, which, without a doubt, currently has favorable price conditions that allow anyone to enter, either either directly or through collective investment funds (FIC).

(Also: This is how the virus spreads from the Caribbean coast to the south of the country)

But how do you know where to invest? The golden rule among experts is prudence, more at times when high-risk assets look tempting.

Juan Camilo Rojas, Investment Strategy Manager at Credicorp Capital, says: “In times of difficulties, rather than worrying about making decisions, you have to follow a strategy oriented by professionals to find the right moments and thus make the best decisions.”

For the expert it is key to take into account the risk profile. If you’re willing to withstand high volatilities and possible further temporary declines in prices, like stocks, consider them.

If you prefer do not risk a lot (conservative), consider refuge assets, these are the ones that, in times of market stress, like the current one, they serve to preserve the value of money, ensuring easy liquidity and reducing losses to a minimum, such as public debt, gold, yen or dollars.

But if the need to have cash is high, it is advisable to have bank accounts, FIC, CDT, or AAA bonds with maturities of maximum one and a half years.

Although the shares have lost 28 percent of their value this year, the recommendation of the experts for those who have investments there is not to go out and sell, because with that decision they absorb the devaluation of the crisis.

But If you are looking for a long term investment and are risk tolerant, this may be the right time to acquire some shares with good potential for future growth.

In March, in fact, natural persons were net buyers of shares, invested nearly 19,000 million pesos. The private pension funds (AFP) allocated 537,546 million, while the companies invested about 94,000 million.

“A clear message of this is demonstrated by natural and legal persons who took advantage of the moment to recompose their portfolios with diversified investment alternatives, seeking long-term profit, believing in the future and the strength of local companies for their investments”, says Juan Pablo Córdoba, president of the BVC.

So you can invest without leaving your home

Thanks to technology today it is possible to invest your money, safely, without leaving home. A call to the commission agent, an order given through an application is sufficient to acquire assets in or outside the country.

But, experts recommend getting good advice before making any decision. In the BVC they say that the commission agents have investigators who are in charge of analyzing the companies, and the economy, its financial structure and the factors that can affect it such as the coronavirus or the reduction in oil prices.
Remember that if you decide on the shares, they do not provide a fixed return, but this depends on market variations.

Before making a decision research or ask. Choose companies that can overcome the economic crisis.

It is recommended to diversify the portfolio, that is, to buy shares of different companies that belong to different sectors of the economy.

The investment time is very important, although the actions cannot ensure an expected return in the long term, their behavior reflects the behavior of the economy, it will overcome the negative effects of the expansion of the coronavirus and low prices. of the oil.

Some options to invest in online stocks or investment funds (FIC) are:

– TPaga: in addition to being an electronic wallet, it offers the possibility of linking a FIC. It has an alliance with Actions and Values.
– Ualet: pioneer in its genre. It allows people to invest in more than 30 FICs starting at $ 10,000. Ualet distributes resources according to risk profile.
– Trii: for buying and selling BVC shares from the cell phone. There is no minimum limit and guarantees the lowest commission on the market. The return of the investment takes five days.
– Tyba: They have the backing of Credicorp Capital and are supervised by the Superfinancial. The minimum investment is $ 100,000. They charge a commission of between 1.3 to 1.8 percent per year,
– InvestBot: backed by Valores Bancolombia and supervised by the Superfinanciera. A robot is the one that makes the investments according to the customer’s profile. Minimum investment of $ 6 million.

DRAFT ECONOMY AND BUSINESS