Pandemic brings new investment strategy

Investors are like everyone else in the new pandemic economy: they need informed insight to help them find their way in unprecedented times.

Graham Priest, investment adviser at BlueShore Financial, provides some of that insight as interest rates hit historic lows and holders of expiring term deposits who would typically roll their investments over have been forced to consider new investment strategies or face a significant cut in returns. 

Priest said that during the current bull market it wouldn’t be unusual for stock prices to stagnate before they make their next move up. However, that doesn’t mean that opportunities are gone.

He said relatively high stock indices are being driven in large part by a handful of large market cap tech companies. But Priest added that the stock prices of large blue chip could drop now as investors cash out some of the profit they’ve made during the recent rally.

While stocks prices for financial and utility companies haven’t risen along with the likes of Amazon (Nasdaq:AMZN) and Apple (Nasdaq:AAPL), Priest said they remain relatively attractive. 

But stocks are not the only investment option. 

Priest said people are also looking more closely at annuities as a way to increase cash flow in their portfolio. Real estate investment trusts (REITs) can help investors diversify their portfolio without having to invest directly in real estate . 

He said the pandemic has made REITs attractive because of their long-term growth potential even though they may provide lower dividend yields . 

Gold and silver have also provided inflationary protection in the pandemic economy.  

Housing prices have weathered the pandemic relatively well, but the practicalities of owning and operating rental properties make them a risky choice for many small or retail investors.