Poll: 80% of U.S. Investors Believe COVID-19 Presents Big Investment Opportunities
Coronavirus crash will be worse than 2008 financial crisis but also comes with more investment opportunity, survey finds
In a rare interview with Harvard Business School that was published online earlier this month, (it has since been taken down) value investor Seth Klarman spoke at length about his investment process, philosophy and the changes value investors have had to overcome during the past decade. Klarman’s hedge fund, the Boston-based Baupost has one of Read More
New York, NY, April 21, 2020 – Nearly 80% of American investors believe that the economic downturn brought on by the COVID-19 pandemic presents big investment opportunities and that now is a profitable time to invest in financial markets.
While more than 70% of U.S. investors anticipate the long-term effects of the coronavirus crash being worse than the financial crisis of 2008, the majority (over 60%) say the crisis also presents a bigger investment opportunity.
In a survey of nearly 1,700 U.S.-based investors released today by financial markets platform Investing.com, respondents were in unison of the potential to make money during this unprecedented public health crisis, with just 4% of investors planning on exiting the market at this stage. Continuing on a positive note, over 55% of investors believe the economy will fully recover a year from now, with 32% believing it will do so before the end of 2020. Just 4% of respondents believe the economy will never fully recover from the COVID-19 crash.
That said, investors are not discounting the magnitude of the more immediate crash anticipated for the U.S. economy with more than 80% of respondents believing we’re headed for a global recession and 42% more worried about their finances than their health amid the coronavirus outbreak.
Taking Advantage Of The Volatile Trading Conditions
“The coronavirus crisis has already cost the U.S. economy 22 million jobs and counting, far dwarfing the total number of jobs lost during the 2008 financial crisis,” said Jesse Cohen, senior markets analyst at Investing.com. “With the economy likely already in a recession, investors should be prepared to take advantage of the opportunities presented by volatile trading conditions. Like the old adage says, panic when everyone is greedy, but be greedy when everyone panics.”
With many wondering how President Donald Trump’s handling of the crisis will affect his chances of securing a second term in office, almost 40% of investors — and 73% of Democrats who participated in the survey — agree that Trump’s coronavirus response will ultimately cost him November’s election. Meanwhile, Republicans have a relatively high approval of Trump’s handling of the pandemic, with 87% stating they do not foresee that the crisis will create any problems for the president in the 2020 election.
The full story is on Investing.com
Methodology: This poll was conducted April 7-10 based on interviews with 1,690 U.S. adults from Investing.com user database. The poll has a margin of error of plus or minus 2 percentage points.