The Best Investments for 2021 – Building a Powerful Portfolio

Investments 2021
"2020 was a truly fantastic year for some, technology, health care and industrial sectors went off the charts as the pandemic dominated the world, no wonder people like Jeff Bezos, Elon Musk and Mark Zuckerberg were laughing on their way to the bank throughout the whole year, richer than ever."

In the meanwhile, the less fortunate are still experiencing a period of uncertainty as this year felt like all previous economic crisis merged together in a sour soup served when still boiling hot, only this time, we didn’t get to seat in front of the tv and watch the man in suits beat each other to death from a third-person perspective, yes, it reached the whole globe in a flash.

If anything is to be learned by the current condition, is that it’s impossible to forecast the future, the stock market is like a toddler discovering the world, its span of growth in any given stock could be gone in a flash mocking your good intentions and replacing your piña colada with tap water in no time, any time.

Although no human being or human-made system can predict the stock market, there are right approaches to reduce its bitterness once it punches you in the throat, a good fundamental is to keep a diversified portfolio leaving no substantial amount invested in any given stock, this approach will wipe some basic mistakes the majority of new investors make, putting everything in one stock, watching its value drop and quickly panic sell, the end result is an empty wallet.

Get Used to Losing Money

To some extent, you have to lose to win, constantly checking on your investments will not only cause you paranoia but will also deeply interfere with your decision making abilities, unless you make blind investments every single time, chances are that at least some of your investments will flourish while others will not be doing so well, this is normal and it’s not a reason to panic, no one ever entered the stock market and saw nothing but profit, make logical investments and let them sit for at least six months, if not a single one produces desired results, only then it’s time to reconsider your approach.

Now that the initial points are past, there are a few predictable factors that will come to play during 2021.

Impact Investments

It’s no secret that environmental and climate changes were not hot topics during Trump’s Presidency but this is about to change as soon as Joe Biden takes office.

Sustainable energy investment is already experiencing a massive leap, investors are pumping money into funds related to environmental companies, even though a chunk of Biden’s 4-year term will be spent around changing environmental policies, the public markets are expected to follow his initiatives towards tackling climate change from the beginning.

Hot Stocks:

> Tesla (NASDAQ:TSLA)

> Sunnova Energy (NYSE:NOVA

> Brookfield Infrastructure Partners (NYSE:BIP

Travel Stocks

It’s possible to witness a strong comeback from certain stocks related to traveling but buckle up, It will probably take a couple of years for travel volume to return to pre-covid numbers, travel and tourism contributed to global GDP in approximately 2.9 trillion U.S. dollars in 2019, there is no denying this number is smaller for 2020 but still, traveling is never going to end, investing now means you’re in for a joyful ride in the long term.

Hot Stocks:

> Expedia (NASDAQ:EXPE)

> Boeing (NYSE:BA

> Uber (NYSE:UBER

Pharmaceutical Stocks

The so much discussed Covid-19 vaccine is already having a positive effect on the markets, even with its fair share of negative news, It’s giving us a breath of fresh air and hope, an economic recovery is bound to happen as the pandemic falls under control, everything is pointing at 2021 to be the year this rebound will start to unfold.

Hot Stocks:

> Pfizer (NYSE:PFE

> Sanofi (NASDAQ:SNY)

> Bristol-Myers Squibb (NYSE:BMY)

Retail Stocks

Uncountable physical stores classified as nonessential closed doors under the government-imposed shutdown, expenses and no revenue translated into devastating losses for retailers, especially the ones that lack an eCommerce department, a large portion of the stores reopened by now are still in deficit due to revenue gap, 2021 will be the perfect time to start investing on these.

Hot Stocks:

> Amazon (NASDAQ:AMZN

> Target (NYSE:TGT

> BJ’s (NYSE:BJ)

Restaurant Stocks

The restaurant industry is a broad one, from local dinings to big-name international chains, the market is vast.

Millions of restaurants across the globe have closed doors and needless to say, people that are now afraid to grab a nice restaurant meal will look at things differently once the pandemic starts to fade away, so why not invest right now?

Hot Stocks:

> Chipotle Mexican Grill (NYSE:CMG

> Wingstop (NASDAQ:WING

> Shake Shack (NYSE:SHAK)

Crypto Market

Digital currencies are an asset that keeps laughing at the face of non-believers, Bitcoin just recently broke its all-time high value even though “expert market analysts” kept bashing it, I made a post about cryptocurrencies and how to start investing in the cryptomarket a couple of months ago, by the time, each bitcoin was valued at around 10.000$ USD, let’s not forget that cryptocurrencies are a relatively new asset and are still not widely accepted as means of payment, they are a risky investment but one that if done right can beat any other asset in a shorter amount of time, especially if the rate of adoption suddenly explodes.

No one knows exactly what will happen in the future of cryptocurrencies, there are a bunch of altcoins that will eventually disappear but believe me when I say that Bitcoin isn’t going anywhere, in ten years its value could be 0$, 100.000$, or 1.000.000$ per coin, if you’re an investor at heart, it’s starting to become impossible not to be excited about the future and to keep an eye on digital currencies.

Hot Cryptocurrencies:

> Bitcoin

> Ethereum

> Litecoin

Real Estate

Real estate is another constantly changing market, to be successful in it, you must possess the ability to find market opportunities and sharply pivot your investments towards the right direction as opportunities vanish in a blink of an eye.

Once again, since we are going through unprecedented times, 2021 is possibly a very large window of opportunity to invest.

Hot Stocks:

> Schwab US REIT ETF (NYSEARCA:SCHH)

> Store Capital (NYSE:STOR)

> WP Carey (NYSE:WPC) 

Final Thoughts

Any information provided above is purely based on speculation, if you’re trying to invest don’t take any words in this article for facts and do some research first, these are examples of possibilities and not get rich quick schemes.

Next year could be the one that brings some fresh air and relief, after all, it’s wise to start seeking ways to invest your money right now.

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