Are you ready for the new year? If you’re like many other working people, you might have investing on your mind. After a turbulent political season in the U.S., a worldwide pandemic in the form of the virus pandemic, and a stock market that seems to know no bounds, nearly everyone is wondering what kinds of new opportunities will be opening up as 2021 rings in.
Fortunately, volatile times offer all sorts of unique investing opportunities for people of all income levels.
Whether you’re looking to start saving for retirement, get involved with automated trading, checking out alternative investments, or putting at least some of your funds into cryptocurrency, the rest of the 2021’s promise to be a decade full of interesting ways to earn a profit on investments of all kinds. Here are some of the ways people will be striving for financial success in the years to come.
When the stock market gets scary or takes a huge downturn, gold and other precious metals become safe havens for people looking to park their money in a protected environment. After one of the most hotly contested political contests in a century, and in the face of a worldwide viral threat, gold and its precious cousins could be set to do very well for the next decade.
The yellow metal already hit several historic highs in 2021. Silver, palladium, and platinum has also set record highs. It’s always hard to definitively explain price action in the metal’s markets, but global economic volatility is likely a key part of the reason.
If you’re interested in acquiring silver, gold, or any of the other PM’s, be careful not to put too large a percentage of your assets into the sector. Using them as a hedge against a falling stock market or global crisis situation is the most effective way to leverage their power. A common rule of thumb for metals’ enthusiasts is to make PM holdings no more than 10 percent of your portfolio.
Consider Becoming a Part-Time Trader
Not long ago, few non-brokers make a living as traders. Nowadays, with so many online brokerage platforms to choose from, just about anyone with a desire to learn can take up trading as a way to earn extra income. The best part is becoming a home-based investor and trader need take up no more than a few hours of time each week. Some working adults actually make day trading a part-time job and ease into doing it full-time after they get used to the strategies and techniques.
Diversify with Alternative Investments
From the early 2000’s until now, the alternative investing niche was not a mainstream phenomenon. Now it seems as though every other financial article, report, or white paper you stumble across includes reports about the growing popularity of non-traditional investment opportunities.
What are the main candidates in this category? In addition to fine art, wine, and collectible cars, it includes precious metals, diamonds, rare stamps, antique guns, and old coins. The range of what AI includes encompasses pretty much anything that people collect for profit.
But people have been collecting all these things for years. What makes the AI category so special? The new twist is that so many serious-minded adults are parking at least a portion of their funds in these non-stock assets. An entire industry has grown up around the concept of alternatives, as their supporters prefer to call them.
Wine is perhaps the best example of a collectible item that went from appealing only to a tiny percentage of the population to becoming a globally traded asset that enjoys an audience even among people who never consume. Alternatives are here to stay, so if you decide to get involved, be sure to do research, select something you enjoy holding, and have a long-term rather than short-term attitude about profits.
Invest in Cryptocurrency
One of the hottest topics of financial news sites these days is cryptocurrency. A relative newcomer to the economic universe, this non-hard form of currency has literally transformed the way people look at wealth, money, and value. Bitcoin (BTC) is by far the largest player in the niche, accounting for about half of all crypto in current use.
For those who are intent on adding BTC or one of a half-dozen other cryptos to a portfolio, beware of high volatility and a few security concerns.
If you stick with the larger websites, brokers, and sellers of cryptocurrency, it’s relatively simple to eliminate the chance that your cyber wallet or accounts will be raided. As for the volatility question, part of the allure of this new form of money is the chance for outsize profits.
Beginners should start out with small holdings until they understand how quickly prices can change, how wallet security works, and how to choose several currencies in order to diversity crypto portfolios.
For centuries, human beings have been putting their money into real estate (RE). In modern times, huge numbers of folks take the attitude that you can’t make more land. That finite supply concept is what drives billions of dollars into the RE sector year after year.
As a true alternative way of earning a profit, buying real estate can be an excellent way to build long-term wealth.
That’s because even with management fees, taxes, and other ongoing expenses of ownership, the returns are large and reliable enough to make the sector a perennial favorite for portfolio diversification and stand-alone investing.
The Medical Sector
It’s already apparent that at least the threat of a worldwide pandemic can change buying habits, research priorities for industry, and government policies rather quickly.
When the COVID virus first moved from China into the rest of the world, some investors noted that science-based and medical corporations stood to do very well, and they were right.
Several of the best-performing entities in 2021 were those connected to vaccine development, medical equipment, products for testing, and hospital supplies.
It’s not likely that COVID will be a one-and-done affair because too many people are already worried about what the next reason will be for a global shutdown and quarantine.