At the beginning of 2020, all markets were set for active growth before the pandemic hasn’t undermined the global economy. A huge number of investors have become more prudent about their money. In the current uncertain economic conditions, it’s difficult to understand how stable certain spheres will be to invest in it.
In this article, you’ll find out where it would be better to invest in 2021 to increase your income, or at least save your money.
Real estate is a very attractive long-term investment option. However, you’ll need a lot of money and don’t forget about commissions. It’s pretty rare for property owners to cover their expenses in a couple of years. This is often achieved by holding the asset for a long time.
One of the main questions that will worry you is where to get the money. For instance, you can easily borrow most of the money from the bank and return it with quite an adequate percent lately. If you want to be an independent property owner, you should look to tax laws to know how easy it’s to deal with real estate.
When deciding to invest in realty, consider the risks. When you buy a property, later on, you get a lot of money that belongs to one asset, and the lack of diversification can lead to problems. If you don’t find tenants, then pay the mortgage and bear other costs.
Despite the high risks, you can still make a big profit from your real estate. If you have purchased a good property and competently manage the processes of its lease, you can receive profit from it repeatedly over a long time. After you paid off a mortgage, you’ll face more stability, more investors, and cash flow.
When it comes to investing in precious metals, gold is the safest one. Investments like these are resistant to inflation and, therefore, are very popular with investors in case of any economic disruption. On pandemic days, gold may seem like a pretty attractive source of investment to you.
To decide on what metal you want to invest in, get acquainted with the trusted dealers. The San Francisco Bay area, for example, and nearest cities have appropriate dealers. By the way, we recommend using the catalog of services at Aureus POS system to search for bullion and numismatics dealers.
However, keep in mind that this precious metal incompletely reliable source to increase finance, compared to the stock market. So, you can invest in gold by purchasing bullion or investing in a fund that tracks its cost. Alternatively, you can purchase mining companies’ stocks or acquire a tracker fund that mimics the performance of these companies.
In 2018, health care costs in the USA increased 4.4% over previous years. It’s expected, that the average annual growth rate is expected to be 5.5% until 2027, and the GDP will be 19.4%.
Nowadays, investing in healthcare is relevant and will gain momentum over the years. Especially it takes place in poorer countries with high mortality rates. Gradually, financing of medical expenses is increasing here, which opens up promising sales markets for American pharmaceutical companies.
If you want to invest in health care, you can choose to buy ETFs or stocks.
Investing in an exchange-traded fund suits you if there isn’t enough time to dog a lot into individual stocks. If you buy an investment fund with a diversified number of securities, you’ll have many high-growth stocks, a safer and more diverse set of companies. Thus, you’ll receive all companies’ average annual returns.
You can also buy a less diversified fund in a specific industry. But remember: any industry depends on the prices of raw materials and other components. If prices rise, many of your fund’s stocks will likely suffer.
Cryptocurrency is a digital asset with a high level of investment risk. In early 2020, the pandemic triggered a 36% rise in the value of bitcoin. Because of this, investors have become more active in buying digital assets and gold as a reliable way to save their money.
Although this type of investment can bring a lot of benefits, it still has a disadvantage. This is due to cryptocurrency price volatility. From 2020, the price of bitcoin has been constantly changing, making some risk-free investors seriously think about it.
Today there are different types of cryptocurrency, among which are the new Ethereum and Safemoon (and more unsafe). It doesn’t mean that you need to refuse to invest in them – it’s just a need to understand how prepared and resilient you are to take risks.
One of the best options to keep your savings or grow is investing. It doesn’t matter which area you choose. To make a decision, you need to analyze how promising your chosen field is, study the dynamics of changes in your region and the world.
Decide on the desired income, consider all the possible risks, and think about whether you can resist them. And remember: choosing diversification, you have a better chance of success with long-term investment.