LYNCHBURG, Va. (WFXR) — The stock market rebounded a bit on Monday after losses made last week the worst week since the 2008 financial crisis, but some financial analysts say the market will continue to fall while the coronavirus affects global supply chains.
That’s devastating news for retirees who stand to lose a lot of money. It’s also an opportunity for young people just starting to invest.
For Liberty University graduate student Ignacio Garrido, it’s a sign for fellow young people with not a lot of disposable income to take advantage of the moment and invest.
“Oh yeah, definitely,” he said. “Yeah, you should. It’s a good time.”
Garrido is new to investing.
“I actually just recently started, because I thought that it was a good idea to start working on that,” he said. “I invested in Lululemon, because I think the company is growing.”
Liberty’s business school has resources like a trading floor to help people like him get started.
While Garrido is not taking the coronavirus epidemic lightly, he does see it as an entry point for his generation to get into the habit of investing.
“First of all, it’s a tragedy that it’s happening to the world right now, and it is affecting in many different areas, but definitely the stock market is going down, and therefore it’s a good way to start investing in some other companies.”
Liberty University Business School Dean David Brat says now is as good a time as any to start investing but warns against trying to beat the market with short-term investing.
“If you’re a young person for the first time, and you’ve got some bucks to throw in, and you’re going to keep it there over the long run, sure, buy on a dip, but keep your money in there over the long run, and get on a disciplined financial plan, where you keep putting in over time and time, and don’t time it. If it goes down, don’t get out, right. Just stay in, ride it over the long run.”
He says the safest investments are index funds, which cover a wide variety of industries.
If you’re young a new to investing, there are plenty of websites and mobile apps that are easy to use and can manage your investments for free or cheap.