After one of the most tumultuous years for the stock market in recent memory, a lot of us are looking to get back to investing and meeting our wealth creation goals this year.
With COVID-19 looking to be somewhat under control and a vaccine rollout taking out a lot of the sting for the financial markets, getting back into investments in 2021 is looking on the up and up.
Over the past year, we’ve all seen the markets sway in ways many of us never thought possible, and so we’ve all become a little more pedantic about where our money goes and what is an investment that is also resilient in times of market uncertainty.
In this article, we’ll take a look at some of the top investments in 2021 and why you should consider these.
Cash Comes First
A consideration we often always overlook and almost never suggest is the holding of liquid assets or cash.
Given that interest rates are painfully low in 2021 and essentially make saving ‘useless’ with regards to wealth creation, we are still placing cash at the number one spot on our list.
With the past year working to essentially disintegrate the cash reserves of almost all people across the globe, we suggest working to build these reserves back up as quickly as possible before moving into any of the markets.
There is a good chance if you were like many of us, you had some sort of emergency buffer fund or a cash pillow that has been eaten up entirely thanks to layoffs and COVID lockdown orders, and so replenishing this should come first in 2021.
Once you have some sort of cash buffer in place, you can then consider moving into making some more growth-focused investments, and our top choice here is Bitcoin and other crypto assets.
With the coins hitting the mainstream and more banks, lenders and financial services firms getting on board, it is looking as though Bitcoin is here to stay, and this means there’s a good investment opportunity.
Experts are touting that Bitcoin could soon be an everyday transactional currency, and this means demand and use of the coin are predicted to skyrocket in the coming years as more and more of the general population hops on the bandwagon.
Stocks Remain Supreme
Despite the wiggles of the past year and the GameStop rort, the stock market still looks to be a winner for investments in 2021.
Though single-stock investments might not be as popular or as enticing as they once were, many experts are touting that ETFs are the way to go this year given that they are a little more stable and rely on a myriad of different stocks bundled into one.
As expected, the FAANG stocks are still powering onward, and with COVID forcing the world to the confines of the home and driving up sales for Apple and other brands, these companies are looking to stay firmly planted as winning stocks for years to come.
Outside of ETFs, Consider Defence
One notable investment suggestion coming out of Forbes this year is the defence investment opportunity.
With defence spending in the US looking to increase majorly in the coming year, ETFs such as Invesco Defense are looking to be winners given that they bundle a number of US defence contractor corporations into one single option for investors.
With that in mind, do your research and look into whether defence investment is something that you want to consider for 2021.
An investment opportunity across the globe this year is looking to be real estate given that property values are skyrocketing from Australia, Europe and the US post-covid lockdowns.
For those interested in this investment type, it is good to know that there is the option of buying a home, of course, but there are also various ETFs on the stock market that bundle a number of property development companies into a single stock that allows you to follow this growth and succeed in wealth creation without the large down payments and maintenance fees that come with a home.
With those investment opportunities to consider in 2021, it is quite simple to see that there is a lot of growth to be experienced in the coming year.
Though COVID may have put a damper on things for some time over the past twelve months, we are looking to see a major rebound in the stock market, and financial markets as a whole – and fast.