Sombudha Adhikari Provides Guidance to Investors During COVID

Sombudha Adhikari

August 13, 2020

Investing in the financial markets is one of the best ways that someone can build long-term wealth. However, there are important factors that need to be taken into consideration when you are going to invest in any market. This is particularly true during the current COVID-19 pandemic, which has had a major impact on the financial markets.

One individual that can provide great advice is Sombudha Adhikari. While Sombudha Adhikari  is best known for being a successful software engineer, he also has a strong track record of investing in the financial markets. The tips that he provided could help anyone earn a strong return, even during the pandemic.

Sombudha Adhikari Suggest Staying in Market

With the wild volatility in the stock market, a lot of people naturally want to shift out of stocks and into lower-risk investments. While this could provide peace of mind, it could lead to lower returns over time. Instead, Sombudha Adhikari suggests that you stay in stocks. While you may want to shift holdings to different sectors, you should not leave the market entirely simply due to the volatility.

Sombudha Adhikari Suggests Taking Advantage of Lower Prices

In the markets today, there are a variety of companies that have recovered fully from the lows in March. However, the global markets are still lower from February and some companies are well off their pre-COVID levels. This provides someone with a lot of opportunities. If you are able to invest more, putting more money into the market could help you to earn a great return. You should focus on investing in companies that are undervalued but have a strong historical reputation and track record.

Sombudha Adhikari Tells Investors to be Wary

While there is a lot of opportunity at this point for growth with particular stocks, there are still risks. Due to this Sombudha Adhikari continues to suggest that people be wary of investments that seem too good to be true. While there are companies that will benefit from the pandemic, not all will. Due to this, you should be careful about companies that are promising growth that seems hard to believe in.

Sombudha Adhikari Gives Insight into Taxation

Anyone that invests in the market could do quite well and make a quick return. However, Sombudha Adhikari recommends that you continue to remember the tax implications. If you sell a stock quickly, you be taxed at your normal income level. However, if you are able to wait and hold it for a year or more, you could enjoy lower capital gains taxes. This makes holding for the long-term advantageous.

Real Estate Gives Opportunities for Sombudha Adhikari and Other Investors

The real estate markets are bound to be somewhat volatile but they should bounce back. With low interest rates, Sombudha Adhikari and other investors will benefit by continuing to invest in this core asset. While you should never have your whole livelihood in this market, it could offer some diversification for investors.