Will Crowdlending Survive the Corona Virus Crisis?
In this post, I’ll give you my 2 cents about the coronavirus epidemic and its effects on P2P investments and how we can use it in our favor.
P2P Seems To Be Less Volatile
In my opinion, P2P will not suffer as other sectors of the economy, such as banks, the stock market, shops, etc, because people will still need to have money to keep on with their lives. The majority of the world population is not a good investor nor good (even less) at saving. In my opinion, the market of P2P will even increase throughout time due to coronavirus.
A Big Drop in The Stock Market Is also a Big Opportunity
The drops in the stock market are already higher than of the last crisis of 2008. And things will continue to go south. This also means that ALL stocks are at a discount almost like never seen before. Instead of going crazy and selling everything you have, try to invest in some stocks that dropped and likely to go upper when things start to balance again.
Secondary Markets are Going Crazy
A lot of people are selling their loans in the secondary market, e.g. in Mintos or Iuvo Group with enormous discounts. This a great opportunity if you have spare money and you want to make easy money. You can even buy them, resell at the lower price and keep doing this for a longer time.
In a Financial Crisis, More People Will Ask for Credit
What will the people that had to stay at home and couldn’t make money during this crisis do? If they hadn’t saved enough money (unfortunately, like almost every human being on this planet), they will likely ask for credits. They will still need to pay their luxurious car, house, or whatever unnecessary object that they chose to have in a buying loop that will never end (unless they start to adopt the right mindset).
This is a great opportunity for all p2p investors as surely the interest rates will increase and the diversification will also be better. At least, this is how I see it. I’m not a wizard – yet :-).
You Will Find Out The Strong P2P Players
In times like these, a lot of people tend to withdraw their funds due to panic. Almost all platforms are suffering sells on the secondary markets (the ones who have one) and huge money withdrawal. This is also another good opportunity to see the strong players of crowdlending.
The platforms to survive and thrive are the ones that (probably) were not scams in the first place.
Think Positive, There’s Less CO2 Emissions Globally
Thanks to Corona there are less than a million tons of CO2 emission per day emitted globally. The world can little by little recover from the past years. This can and should be a big lesson for everyone.
In the meantime please stay in quarantine and keep following the instructions provided by the World Health Organization (WHO).
Prepare for some tough weeks but keep in mind that golden times will come to those who plan it wisely, like you and me.
In summary: Will Crowdlending Survive the Corona Virus Crisis? If the platforms have legitimate businesses, yes.