When the food service and air transportation industries are seeing their biggest “reunions” in years, other businesses and industries are booming. This is an excellent opportunity for investors. Check out what to invest your money in in 2021!
Of course, the market is constantly changing, in times of pandemic everything happens very dynamically. Nevertheless, you can be a bit more sure about a few investment directions. It’s worth investing money, and even necessary. Inflation is happening here and now, money is constantly losing its value. As economists say, this happens faster than salaries grow. Therefore, it is worth finding an additional source of income, which in hard times would be a “financial cushion”, but not a cushion that sits in the bank and grows every year, but one that earns on its own and grows in size, and which you can cash in whenever you want. So check out some suggestions on what to invest in over the next calendar year.
Invest in emerging markets
Emerging markets, or MSCI Emerging Markets, lost heavily after the great crisis of 2007. However, as the results show, they are gradually gaining at the turn of the year, but have not yet risen to their optimal position. Maybe in 2021 the economies of these markets will grow a bit more and faster? Certainly at the turn of the next few years this will happen. This is much better than investing in developed markets, where, let’s face it, growth is negligible. The pandemic situation favors emerging markets, Poland being an example. The calm after the pandemic and the vaccine will bring investors relief to these markets. A great example is China (still belonging to the emerging markets). Its economy rebounded strongly after the pandemic, although it was already at a high level.
There’s never enough gold
A bullion that offers stability and capital protection. It has continuously been a popular choice for investors for years. Interestingly, even cryptocurrencies or new technologies have not displaced it from the market. Considered by many to be the most stable way to invest. But why invest in gold in 2021? It is mainly related to the monetary inflation that may follow a pandemic. We now have a massive addition of paper currency, which will naturally weaken because of this. This is when gold will start to gain, and probably quite quickly. If it doesn’t, it will certainly retain its value when the paper currency loses its value. It’s not always about making a profit on an investment; sometimes survival is the most important thing for an investor.
Shares of sustainable development companies
A way to stably and reliably invest your hard-earned money is in the shares of sustainable development companies. What kind of companies are they? Those, which apart from traditional development of their business, pay a lot of attention to non-financial factors. An example? Making sure their products are environmentally and socially friendly. These companies also take care to follow corporate governance. Climate change or social protection are important topics on the lips of investors. The conscious ones in particular have been targeting sustainable development for some time now. Environment and man – these two aspects will be on everyone’s minds for the next few, if not more than a dozen years. Undoubtedly, enterprises and companies that care for our climate and society will be in high demand. Especially since sustainable companies will certainly be more resilient to future crises
What else can you invest in in 2021?
The investment avenues listed above – emerging markets, gold and sustainability stocks – aren’t all. As with every recent year, real estate investing is sure to remain popular in 2021. It’s still a good avenue that could yield a few/some percent return each year. Rather, that’s it, other opportunities could be a bit riskier, and unless you’re an experienced investor, it’s better not to go in another direction. Of course, the investment opportunities mentioned in this article are not a certainty, it’s never the case.