How do you invest your money in wartime? .. Beware of these mistakes

Amidst the din of the Russian-Ukrainian war, no sound is louder than the sound of security, especially economic security and investment, so how do you invest your money in wartime?

From the files of past wars the world has gone through, the answer becomes more important than the answer to victory How do we secure our resources and how do we invest our money safely?

In most cases the answer is to escape, as the best investment of money in wartime and to flee you and your money out of the country.

Does selling assets solve times of war?

You sell what you can sell, get rid of the local currency, withdraw your money as much as you can from the banks, take what’s left in one hand, and with your other hand your family leaves with no possible return.

Such an answer is economically correct, but the question is: is there an opportunity or possibility for those who decided to stay to invest their money at home in times of war?

From here we review the experiences and advice of great investors in times of war and the safe way to invest money, which came as follows:

Disposition of cash in time of war

The worst thing you can have in a time of crisis after risky investments is cash (cash), and the worst of it is money in banks.

Withdrawing money is certainly a selfish and harmful behavior from the state’s point of view, and its negative impact will be multiplied by the increase in its practitioners, as is now happening on the Russian and Ukrainian sides.

In theory, the first economic response that occurs before a crisis occurs in a country is the withdrawal of capital. We are not talking about the thousands you have in your account, but we are talking about the billions owned by investors who first move and move quickly to save their money from the country by withdrawing it from their balances or converting it into a foreign currency, which generates the beginning of the collapse of the value of the currency, which takes place in a successive cycle that stops the state at a certain point. by preventing or placing restrictions on the withdrawal and transfer of funds, as well as the purchase of foreign currency.

If your luck is good, you will get rid of the local currency as much as you can, and if you don’t realize this, the first lesson and rule in your plan to invest in wartime is not to keep cash in your pocket not.

The traditional solution to wartime investing… buy gold

In practice, according to Warren Buffett’s repeated advice, one of the best solutions in times of economic crisis and war is to buy gold, but why is gold considered an ideal solution? Does he have alternatives?

Gold, and its companions of all the precious metals that can be bought such as silver, diamonds and jewelry in general, is considered an economic tool against crises and economic fluctuations, and its global value represents a significant security barrier for those who hold it. owned during wartime, and in many cases it is considered the best investment after the end of the crisis.

Most people go to this traditional solution at the beginning of crises, which causes its scarcity for the time being, but there are non-traditional alternatives to gold, such as antiques and pieces of art, and they can also include expensive furniture, modern electrical tools, precious clothes, or even pieces of armor. , if there is an opportunity for good storage to preserve the quality of those collectibles.

The main problem with gold solutions (and its other alternatives) is the possibility to secure, hide or transfer it. damage to property is increasing.

Own assets in times of war with conditions

Owning assets is one of the aspects of investment that should be exercised with caution, and assets are characterized by maintaining their original value over time, so they are originally considered a safe investment that is not affected by the deterioration of the economic situation in the country. .

Of course, one of the best options in this case is to buy vacant land licensed for construction, then agricultural land and finally buildings.

And about the risks of such investments, firstly, on the buildings, which are subject to demolition under fire and bombardment, secondly, the possibility of theft of crops or the exposure of the land to sabotage and burning if it falls within the circle of collisions , and the last risk is in the chance of completely losing property rights and the state’s acquisition or nationalization of private property.

Therefore, your direction for such a long-term investment should be based on an appropriate choice that takes advantage of the dramatic drop in land prices and avoids the risks of property damage and loss.

Some non-traditional alternatives, such as the purchase of livestock, cars, commercial licensing and property rights, may also be included in the asset classification.

Trading in raw materials in times of war

But if you find yourself bound to one of the commercial solutions that can provide your family with a basic monthly income, then you must trade in basic and primary materials.

Naturally, the first response to the situation of war is the relinquishment of individuals to their secondary needs, the cessation of service activities and the collapse of the trade in luxuries and luxuries under the pressure of a lack of cash and low consumption rates; The safer trade is limited to food, fuel and daily necessities.

And here we use the original rule of “not keeping cash” as a main strategy in the buying and selling practice, so don’t sell on credit and try to reduce storage periods.

The risks of inflation and collapse of currencies will haunt you all the time as long as you hold the trade money in your hands, the buying and selling cycles must be as short as possible where people consume less than usual and the rise in commodity prices is always ahead of you, open three small shops better than one big one, and buy a day Where you sell and not wait for tomorrow.

Investing in the stock market in times of war

There is room for safe investment in stock exchange shares and bonds in times of war, but do not go to the shares of local private companies, which are certainly considered suicide for money, but the choice of shares of state-owned banks or companies that supply raw materials can ‘ be a better investment.

Buying government bonds is the safest choice ever in the stock market, but it is also the least profitable, as governments are the most reliable party in the financial market, and the investor guarantees the recovery of the value of the bonds they hold even with the decline of the economy. Surely this is a general principle, if we talk about a Stock Exchange is already active and a country that has a balance of confidence.

Invest in people in times of war.. you win without a doubt

Investment in people is the last resort that cannot be ignored as an economic solution available for investment in times of war.

Especially if you invest in the education of your children by buying a tool or an educational lesson for a new language, skill or craft for them, or to ensure an opportunity to travel abroad, or health spending for them, or even lend to reliable individuals who guarantee that they will return the loan to you in its original value when you need it.

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