Covid-19 is Changing Everything Including the World of Investing? What you Need to Know
- Just many industries are beginning to realise ad compelled by Covid to see that working from Home is just as productive as working in large office3s and that there is a need to re-evaluate various business processes. The investment world is not left indifferent to the wave of changes happening in the world. Traditional investing where the investment decision of many was left in the hands of some “guru” investor or asset manager who made allocation and investment decision on behalf of the majority “layman” investor will continue to be recalibrated post covid-19.
- According analysis of the US stock market, the retail investor has become a more powerful collective force than the professional investor, and they simply don’t care about the same things as the experts. It is not surprising that individual investors now account for roughly 20% of stock-market activity on average and the trend is growing.
The world saw institutional “guru” investors fail in 2008 and despite the measures that were put in place to safeguard investors assets, chances are that the market of institutional investing is till not immune to collapse due to greed and the desire to make abnormal profits.
While the percentage of individual investors in South Africa is still very small compared to the US, the events of Covid-19 with many people learning various things on their own and working from. Home have exposed many to investment education. It is time for many individual investors in SA to choose to invest in their education on financial markets and different asset classes in order to enable them to cope in the post pandemic world. Covid-19 has presented an opportunity for individuals to educate themselves better safe on fees given to expert for increasingly less value offered and set up their own investment portfolio with a little help from their own back accounts and pay less.
Investment like we used to know it is changing forever and education is and personal development is key to succeeding in the investment world of post covid-19.