Uploaded on Sep 15, 2020
JERRY MONONELA 1
How To Invest In the
South African
Stock Market During
The Pandemic
By Jerry Mononela
Investing your hard-earned money is a risk that is scary in normal life, but much more so in a global onset of a
killer disease. The Coronavirus has impacted businesses and companies both huge and tiny alike. A lot of people
have lost their jobs and large corporations are undergoing downsizing. So where do you stand in such a volatile
market, a person looking to invest their savings, hoping to get a decent return?
Naturally, the first thought that would come to your mind in
the yesteryears of Corona would be to invest your money in
various firms that have comparatively low risk and higher
return rates, right? Well, what if I told you that the same
thought process is still valid in a pandemic?
Some of the most common mistakes that people make while
investing are:
• Not knowing enough about the industry they want to be
involved in.
• Not assorting their investments properly.
• Not assorting their investments at all.
So the first thing you have got to learn is
the market you want to invest in. You have got to have
enough information about the firms you want to invest in,
their past performance, their plans, and the return that other
investors have got in the past. You would be surprised to
know how much a little amount of research can do for you!
The next thing you have to do is to assort your investments. ‘Don’t
keep all your eggs in one basket’ is an age-old phrase for a reason.
But just randomly investing in different ‘baskets’ won’t amount to
anything. Smart investments are what will make you money and
then some. One common example would be to not invest in a
similar stock. You would think that you are playing it safe but it’s
quite the opposite.
When you look at the bigger picture, you’d realize that investing
in similar stock would increase the chances of you losing your
money as your investment wouldn’t help any company in
particular. This would mean that the only way your stock in any
one company going up would be on a fluke. And you don’t want
to invest your money on a fluke; a risk, yes but not a fluke.
But all of this doesn’t matter if you don’t know where to invest
your money. So in this post, I’d like to inform you about some
industries that are thriving despite the pandemic and how you
can place a safe bet on any of them.
Online Businesses
It is no surprise that online businesses have not been affected by the Coronavirus but are booming due to people
now ordering most of their stuff online. Even if we disregard that change, online businesses are businesses that
don’t get affected by the lockdown or social distancing as most of their products or services are delivered through
the internet.
So investing in online businesses during a pandemic would be a strategic decision as these businesses will
continue to thrive even after things normalize.
But as is with every type of stock, stock of online companies also comes with risks. Server collapses, hacker
attacks are only some of the things that can bring an online business down. So as mentioned earlier, do your
research and invest in the company that you think would yield the maximum benefits with lower risks.
Delivery Businesses
It is of no surprise that delivery and subscription-based businesses are booming in the pandemic in which every
place is enforcing social distancing. People want to have less and less contact with objects that change hands.
That’s why investing in a local delivery business or an online subscription-based business would be a smart
decision to get a quick return from your sum.
But while investing your hard-earned
savings, you should also consider longevity.
Delivery and other subscription-based
businesses will bloom in the pandemic and
will continue to do so long after the
situation comes under the control as people
will get accustomed to convenience.
The factor of convenience plays a major role in online businesses that more and more people are
experiencing in the lockdown. This will make a large chunk of the user base recurring customers and
ultimately yield more profit for the company.
But all of this depends differently on different types of services that a business offers. Groceries and
essentials deliveries are popular now but would decline when there is no need for social distancing in the
slightly distant future. So do take your time and research about subscription and online businesses booming
in the pandemic and invest accordingly.
Content Creation
The one thing that is considered non-essential by most people but is one of the most essential businesses
of all humankind is the entertainment business. We have seen a content boom because of the pandemic
and more and more companies are on the look for content that can be published online.
Content creation comes under various forms whether it be
blogging, making videos for YouTube, or marketing on
Instagram. But the most important thing about content
creation is that everyone needs content. Businesses needed
content and online marketing before and they need it now
much more than ever. Investing in an online marketing
company would be a sound decision as we move towards a
world that is ruled by technology and the internet is the
biggest marketplace.
Traditional marketing was steadily being pushed out by
online affiliate marketing but the pandemic has made
that push that is making online marketing the next big
thing. So invest in a company that provides a platform
for online marketing to their clients because that is the
direction the world is moving in.
All in all, it all depends on what you want to do with
your money. If you want longevity, it would be wise to
invest in online businesses and content creation as
these types of businesses were already moving
towards being big but have jumped a big hurdle
because of the pandemic.
Delivery businesses would get you a decent return on your
investment in a comparatively lower time as they are
growing in the pandemic but would slow down as the
vaccine rolls out and people start going outdoors.
The most important thing to do would be to do your
research and making a well-thought decision. Jumping the
gun helps no one, especially while investing in the stock
market.
Who is Jerry Mononela?
Jerry Mononela is a freelancer that offers accounting services in the city of Tshwane and has a passion for
finance and the stock market!
Jerry Mononela like to write articles on stock marketing investing tips to help out a complete novice in the
finance industry. If you liked this blog and found it helpful, check more of my articles here.
Comments