How should investors handle their wealth during a crisis?

Have a good amount of cash on hand While many rely on fintech during these times, it's still wise to have cash on hand. Unlike other assets, a cash reserve allows a person to transact easily, especially in emergencies. During the pandemic, when it's considered unsafe to stay in closed spaces like banks or to touch common surfaces like ATM stations, it might be good to have cash that can cover at least a month or two of living expenses.

Invest in essential businesses Crises are not the time to take risks as an investor. While there are innovative businesses that show great potential, Scott Tominaga shares that it is still better to invest in stable industries when the economy is experiencing a downward trend. Food, pharmaceutical, education, and telecommunications are some examples of these. There will always be a need for these industries, and no matter the climate, there will be an opportunity for investors.

Keep saving

Those who have a consistent flow of income must continue to build up their savings. Even if there's not much opportunity to spend for wants, there are still daily expenses to consider, and during crises, the prices of essential goods and services might increase. These times call for investors to take care of their necessities and existing first before taking risks that might greatly affect their portfolio.

Scott Tominaga has been Chief Operating Officer of PartnersAdmin LLC since 2008. The California-based company offers a wide range of services giving clients a scalable and cost-effective option to increase operational efficiency in terms of hedge funds and other financial services. For similar reads, visit this blog.