Many investment books were thrown out of windows or shelved for clearer times as everyone started to adjust to new COVID-world realities. For a large chunk of investors, it has become hard to understand how, when, and if to invest to avoid losing money. But since doing nothing is also one of the worst approaches when it comes to investing strategies, below, we are diving into some best investment strategies offered by seasoned and successful economists and investment companies around the world.
Some of the best investment ideas 2021
Given that you’re reading this article while in the US, the UK, or Europe, where investment capabilities are broad on open markets, the first thing you shall be wondering about is some good stock market strategies. The BlackRock Equity Dividend Fund in the US offers the so-called ‘barbell’ approach: investing in both extremes of the market spectrum, creating a balanced portfolio of high-risk and no-risk/low-risk instruments. The latter would be IT and healthcare, which demonstrate assured stability. The other side includes opportunistic investments in finances and energy sectors.
Another right way to invest your money is to put it into flexible companies with a conscious and careful decision-making process, which stay effective players in an ever-changing market. But that solution would be great for large investment companies obtaining enough human resources to find and monitor such companies – not for individual investors having a small investment resource (up to $1 million) – unless given to some equity management company.
Another feasible market idea for the US market is as follows. Not before 2023, the government will be ready to apply instruments to increase inflation (but markets are likely to consider this factor in 2022). So, now is the right time to pay attention to inflation-protected securities.
At the beginning of 2021, a strong momentum was in those directions of investing strategies, which took off in 2020 thanks to disruptions of supply chains due to COVID-19. These directions have steeply evolved and became nearly ‘classic’ in 2021. And it is likely they will still remain so for several upcoming years. Thus, a good idea would be to invest in companies and markets of telemedicine, cybersecurity, cloud computing, food delivery, and other stay-at-home themes and surrounding businesses. For larger investors, it is a great time to look at automation, AI, and promising technologies, some of which have already made a breakthrough in the past (and which are believed to be in high demand in the future) like food printers. Some of such printer producers even promise to deliver them to homes by 2030.
Generally, most companies in the areas of biotechnology and pharmacy are on the rise today. Some steeply. However, as for pharmacy investments, the risks have to be closely monitored and estimated, as with numerous companies performing more than good, many newcomers entering the market bear significant risks. Although the modern pharmaceutical situation majorly differs from the notorious dot-com bubble, a significantly heated market attracts many new names, not all of which are worth giving attention to. And investments.
A fine investment strategy 2021 is – surprisingly – workaday for all other years and market situations: not abandoning casual growth. If your portfolio has, for instance, +0.7% annual growth on average with a balanced risk level, thinking this is bad is bad. Why should you consider making shifts to other investments, which promise bigger growth? Under these circumstances, this is a very reasonable and effective figure. Small-earning (yet, still earning) investments today would be infrastructure, pet care, remote work, or industrial.
Pay your attention to growing markets, which have become more popular during the sitting-at-home time. Some of them have significantly boosted. And given that more workers shift to work at home, decisively migrating from offices for good (and even starting their own businesses from home, quitting their previous jobs), the growth of the following markets is going to be a trend for at least several upcoming years: video games, marijuana, and renewable energy. As for marijuana, the state’s and national legal and medical regulations apply but the trend is not obvious only for the blind. Namely, in 2020, the legal cannabis market on the planet was $20.5 billion. By the end of 2026, it is expected to grow to $90.4 billion.
Something never gets out of fashion: real estate investing
Although not every market is alluring enough and goes in line with your 2021 investment strategy given the return on investment expectations, property investments never actually get out of fashion. Only now, in late 2021, they require closer monitoring of the situation and getting more into detail.
If you’re not considering a market of developed countries and blocs (given their low ROI or complicated situation in various real estate segments), you might be interested in considering other countries – for instance, Eastern Europe or Western Asia are gaining momentum. Particularly, Ukraine, Hungary, and Turkey. These markets offer a relatively high ratio of monthly rent values to real estate costs (compared to ‘developed markets’), which flows from 6% to 10% annual. And given that the tempos of price growth for apartments and private houses are one of the highest in the world in these countries, this is a definite recommend. Other important factors are the stability of their legislation and taxation in the real estate area, and the low saturation of markets of these countries with system investments.