There have been unprecedented movements in the financial markets ever since the coronavirus pandemic hit. COVID-19 triggered one of the most rapid global crashes in financial history. Nonetheless, the financial markets regained ground, and as 2020 ended, businesses and stock markets record highs in all major indexes.
While things have gotten better with time, we definitely are still living in unprecedented times. Governments globally are spending big on stimulus packages, and this might set the pace for inflation as the world moves into recovery mode.
It can be difficult to know what to invest in as an investor because it’s hard to know what the future holds for different stock markets. The unpredictability is a cause of anxiety for money businesses and investors, yet in times of greatest crises lies major opportunities.
To take advantage of arising opportunities, investors should adopt new investment strategies that align with the changes the stock markets are experiencing. Any strategy that worked before 2020 might not work in 2021 because the pandemic causes the eruption of new world order. Investing in 2021 is about leveraging low-interest rates in high growth markets.
Let’s take a look at the key investment trends that you should apply this year.
Hedge and Hold
If you’ve been investing for years now, you know that property is a key hedge against inflation. Since the property market is experiencing disruptions, you should expect an increasing number of investors venturing outside their normal currency. More property investors are embracing cryptocurrencies because a change in currency protects you from the imminent fluctuation in property values.
It makes no sense, letting your property investments go up by 20% if your currency decreases by 20%. Hedging against your asset base and your country allows you to benefit from the strengths of other currencies.
The reason why more investors are trading in cryptocurrencies is that their strength is increasing exponentially. Elon Musk has played a key role in boosting Bitcoin prices in particular in the past year. With huge rises in the past year, it’s no surprise that Tesla keeps making headlines when buying Bitcoin in billions.
In fact, more businesses are set on incorporating Bitcoin as an acceptable mode of payment. Such businesses stand to profit more from cryptocurrency transactions alone than any of the regular business activities. As Bitcoin’s value keeps increasing, businesses that have already incorporated it in their payment methods benefit greatly.
Double Down on Disruption
As a history buff with a proper recollection of the stock market crash of the 1920s, you would agree with the recommendation for investors to take advantage of disruptive technologies. If you have trouble writing history papers, be sure to reach out to professional academic writers to get help with assignment papers.
Suppose you would have told people back in the 1920s that TV networks would become industry giants within the next decade because TVs would become readily available in households. In that case, they’d say you’re hallucinating. People are always sceptical of disruptive technologies until change proves them wrong.
As an investor, you need to look towards disruptive technologies because history has proven that they set the pace for future innovations. They might take time to skyrocket, but as sure as the sun’s rising in the East, they eventually peak.
We have access to historical accounts because they show us the mistakes we should not repeat. Imagine how many people disregarded companies like Uber and Yahoo, and yet they managed to stand the test of time. It’s only got to show that all highly lucrative ventures leverage disruptive tech to remain future-proof. As an investor, venture into Greentech, Fintech, Medtech and Edtech as these are all trillion-dollar industries in the making.
Digitize Your Assets
This should go without saying, don’t you agree? But it’s worth mentioning because the most obvious of things are the ones most overlooked. Since the world today is digitized, it’s only natural that investors should digitize their assets.
If money itself is no longer the highest transactional value, that should tell you that people’s approach to investment has changed. Shifting away from the conventional format of investing allows you to secure your investment portfolio in today’s era of non-fungible tokens.
Prepare for Impact
The truth is, there are going to be big crashes happening, but this does not mean that your investment portfolio will be washed away. You can leverage the big waves to surf and stay afloat. As we move into a post-covid world, expect that business won’t be as usual due to the changes the stock markets have experienced.
Embracing the new normal allows you to cushion the impact your businesses and investments might experience depending on the industry you’re in. The most prepared investors are likely to thrive because luck and opportunities knock on the doors of the prepared.
Additionally, Millenials and Gen Z are pushing for conscious investing, and soon, this trend will stick. Younger generations are using the wealth transferred to them from Baby Boomers to initiate exponential growth.
Speed Beats Size
Investors should always remember that it’s not about how big they are, but how fast you can be to get into the right investment at the right time. So you need to be quick at spotting emerging trends and jumping in at the right time.
Investors who experience the highest returns invest in momentum and meme stocks rather than traditional investment markets.
Since the rules of investment have changed, it’s about time you changed your tactics as well. You need to keep up with the changing times to secure your investment portfolio during these volatile times. Follow the examples of succeeding investors so you, too, can succeed.