The COVID 19 has certainly taught us that your conventional saving will not work in times of crisis. The only way to overcome these problems is by using your capital investment to hold assets that will appreciate in the future.
2020 has come to an end. Today will be the last we will be enjoying in 2020. Before leaving us, 2020 has taught everybody a valuable lesson: Investing is the only key to attain financial autarky.
Despite the backdrop of the global financial economy, some of the assets were able to keep their market value. Furthermore, these assets were able to increase their market price even in this weak economic condition.
So as we approach 2021, we have prepared a list of the leaders and laggards among the assets classes.
Leading Assets That You Can Invest In 2021
Though there are several assets that you can invest in, there are some which simply are the best and will give you high returns most of the time.
1. Precious Metals
Precious metals have been the top-performing conventional assets this year. You must have seen the price of Gold almost get doubled this year. Even in the Pandemic, people were buying Gold to safeguard their savings from inflation.
Not only Gold, but there was also other precious metal assets class like silver and platinum. All these have also performed well in the trade market. Hence, you can consider one of the following as your investment in 2021.
2. Equities & ETFs
The trade market is always filled with high risk. However, 2020 has seen an accelerated boost in risk appetite. Especially in the end month of 2020.
Investors and traders are flocking towards riskier assets to make high margin profits. The popularity of the high-risk ETFs has helped the market to recover a little from the pandemic damage. Experts believe that it will continue in 2021 as well. Hence, you can use this opportunity to make profits out of Equities & ETFs deals.
Cryptocurrencies have been the best asset in 2020. Though they are digital money and have no physical presence, people have shown more trust in Cryptocurrency than fiat currencies. The reason is quite simple. On the pandemic, fiat currencies were of no use. In fact, due to the recession, the fiat currencies started losing their value.
Traders and investors were able to see the change. They started shifting their assets and portfolio to Cryptocurrencies. The price of Bitcoin that dropped to $3000 in March recovered to 900% by the end of 2020. Experts believe that the price of Bitcoin will continue to grow in 2021.
Laggard Assets That You Need To Avoid In 2021
Every race has its leaders and laggards. The investment market is no exception. Here are the asset classes that you might like to avoid.
The stock market has taken the most of the damage due to the pandemic. The damage is so great that even if we go full throttle, it will take time to bring back the old economy. However, we cannot overlook the stimulus packages.
Central governments are giving stimulus packages to the citizens to boost the economy. However, it might slow down the stock market.
There is no doubt that Gold is the best asset. However, if you are investing in Gold today, you are too late now. The Gold’s price has already been doubled in the pandemic. Hence, you might find, as the economy stabilizes, the price of Gold will simmer down. Hence, your investment can accrue a loss.
The prediction might not go as we have predicted. But it is true that the Economy will take time to fully recover. Hence, inserted in investing in conventional based assets (That will take time to give you a profit), invest in assets that are sure to perform in 2021.
One such asset is Cryptocurrency. The cryptocurrency was the dark horse asset class in 2020. Many experts believe that the surge in Cryptocurrency will continue even in 2021. If this sparks some interest in Cryptocurrency, you can use the bitcoin-billionaire.com to take your first steps towards Crypto investment.