The year 2020 was one of the most challenging and in some ways, an interesting year to put it mildly. At the time of writing this post, the 2nd wave of the pandemic is still in full swing across vast majority of the countries despite mass vaccination campaigns. The markets for various assets continue to be volatile and opportunities continue to present themselves in many ways. We are going to try and present to you, some of the best asset classes we think are poised to perform well in the coming days
Real Estate Investment
If you were thinking that the pandemic is going to capitulate the real estate market and were holding off on buying right now so you could buy at rock bottom, then you might miss out. You see, although it may seem like a housing crash maybe around the corner, we at Hustle Domain think otherwise. We think that this time around, things might be different. Mainly because the interest rates are so low that its easy for everyone to acquire money to get into the market. Also this time around, the inventory is also at record lows.
You maybe thinking that there maybe a slew of foreclosed houses up for grabs pretty soon, but again this may not be true. Most people have refinanced their homes for lower rates and payments or have deferred payments altogether to weather the storm. Also, the lenders learned from the sub-prime mortgage crisis and this time around, there aren’t too many homes out there that were acquired using bad debt. So if and when you see a good investment property pop up on the market, our advise would be to snap it. Click here to learn more about how to get into real estate investment.
Bitcoin and Cryptocurrency
As you must know by now, the federal reserve has been printing money like its no body’s business. The pandemic forced them to take this practice up several notches as well. With so much fiat money floating in the market with nothing to back it up against (such as gold reserves), this only serves to erode the buying power of the dollar along with public’s trust in the monetary system. Enter cryptocurrency. This for-the-public by-the-public tool is increasingly gaining trust and now acquiring mass adaptation. Despite the lack of education in this area, everyone is trying to get their hands on some coveted Bitcoin and other alt-coins. Call it the digital gold rush, but underneath the speculation, there are some sound reasons to look into Bitcoin and some of the other Cryptocurrencies. You can read and learn more about Bitcoin here.
Big Tech, IT and Remote Enablement
When the pandemic hit, the technology sector saw huge gains making 2020 the biggest year for the tech stocks. Companies that provided remote solutions such as Zoom and other companies that provided the supporting networking infrastructure, online shopping, payment processing and online business enablement, food and package delivery applications and platforms, all saw their values soar.
This is a sector that will continue to see growth in the coming days as the pandemic is set to shape our lives on permanent basis in some ways. A lot of the people who have now worked from home, would love to continue to do so. A lot of companies would also not mind letting their employees work remotely for it is more cost efficient for them as well. Similarly, once people get used to the ease of online shopping, they will continue to avail the ease that it offers.
Electric Vehicles and Green Energy
Try as they may, the conventional motor industry and the oil giants will not be able to slow down the upcoming surge of electric vehicles. With the consumer trend tipping in favor of EV’s and with the Biden government promising to take big steps towards a green future, most car manufacturers realize this inevitable reality and are trying to adapt.
Manufacturers like Tesla and Nio are huge players in the stock market now and both saw their evaluations soar in 2020. This trend will also continue in the coming days as even the government policies will being to veer in favor of the green movement. Aside from EV’s the renewable energy industry as a whole is poised to grow. ETFs for solar and wind energy are bringing great returns and will likely continue to do so as most consumer and industrial energy providing companies invest in renewable options.
Investing in Index Funds
For the hands off investor who is in it for the long run, index funds have always been a great choice. This year is no different. In 2020, the stock market crash occurred back when the pandemic started. Since than however, it has predictably made a recovery. Had you been one of the lucky ones who hadn’t panicked and bought into the S&P500 indexes during the dip, you’d be sitting pretty right now. However, its still not too late. Using dollar cost averaging, you should get into the habit of regularly investing in the S&P500 anyways. It’s a collection of the 500 most valuable companies in the US. Given that the stock market has never failed to recover from crashes (given enough time), index funds are a safe bet for long term patient investors.
In Conclusion
It’s important to keep in mind that there are opportunities in any situation, even during this pandemic. For the opportunists, fortunes were made in 2020 and will continue to be made in the years to come. Armed with the right kind of knowledge, you ought to be able to spot the market trends. Consequently you can invest in sectors that are ripe to grow exponentially in the coming days due to the current climate and cash in.
Disclaimer: Like all other posts on Hustle Domain, please keep in mind that this post is for educational and entertainment purposes only and is not meant to be financial advice. Please practice caution and do your own research before investing.