Terry Selb Answers the Question: Is Investing a Tax Return in Stocks Wise During Covid?
Terry Selb has watched the developments of Covid-19 with a careful eye and is worried about how it may affect many people’s financial situation. However, he doesn’t think that now is the time to panic or start avoiding stocks – with the right outlook and approach, you can still make good money on the market.
Terry Selb: The Market is Volatile But Not Crashing
As the Coronavirus pandemic worsens and spreads, Terry Selb has seen the stock market become wilder and harder to predict. Even in the best of times, the market can seem unpredictable and scary. However, Terry Selb feels hope because the market hasn’t yet totally crashed at the moment. Yes, it lost a significant portion of its value at one point, but it has stabilized.
In such strange and uncertain times, Terry Selb takes this as a good sign. The market may be a little wilder than usual, he states, but it hasn’t yet gone the route of 2008. That’s because the market is still inherently strong – the drop-offs in value have been artificial and caused by Covid-19 fears. And while this situation could still worsen, he believes that it’s nowhere near as bad as it could be.
Therefore, Terry Selb believes that there is still value in investing in the stock market. And those who like to take their tax return and buy a few stocks every year have many options from which they can choose. While they may not want to purchase many types of stocks, Terry Selb believes that there are excellent options.
Terry Selb Picks Stock Types to Watch
During this crisis, Terry Selb believes that the best stocks are those connected with medical companies and those fighting to find a treatment or vaccine for Covid-19. Many different groups are pursuing this goal, and investing in them now is a great choice. Even if their value doesn’t increase heavily, spending just your tax return shouldn’t be too much of an investment.
And if they do make it big, your stock prices will become much higher and more impressive. What is important to note, Terry Selb says, is that many of these stocks are also considered low risk in many ways. That means that they aren’t likely to plummet or take all of your money in a crash. They are stable but can also suddenly get high if a company creates a treatment or even a cure.
Of course, he also emphasizes that there is an inherent risk in chasing these types of stocks. If a pharmaceutical company does not create a cure or is late to develop a treatment, its value may not increase. However, Terry Selb also states that the very nature of these companies often causes their stocks to go up temporarily – and swooping in early with a tax return investment may help out here.