Top 3 investing trends for 2021
Since mid-2020 the world recorded a crisis like no other. As a result, the global economy closed that year in a state of financial instability and crisis. We recorded this trend in the 1st trimester of 2021 as well.
While a few months ago it seemed, there was no light at the end of the tunnel and we all thought the global economy will not be able to overcome the context of radical uncertainty for a long while, financial analysts have started recording some positive trends at the beginning of Q2 of 2021.
The fact is, the situation is comparatively stable now. The fight against the pandemic is not won yet but it seems governments have acquired immunity during this period that helps them mitigate the effects of the crisis in different sectors of activity. The emerging global immunity, plus the widespread usage of vaccines will ensure even more stability in the coming months.
During the past year, the investment market (stock market in particular) found itself in a turbulent zone. While amount-wise it hasn’t changed a lot, the world currently witnesses some rapid transitions within the sector.
Here are the top 3 investing trends that businessmen should keep in mind.
Don’t put all your eggs in a single basket: Use several baskets!
We always say that each investment project reacts to market instability differently. That’s why to avoid insomnia-inducing situations, investors should diversify their portfolios.
While some years ago financial analysts advised diversifying the portfolios by investing in more than one sector, currently they urge to opt for investing in several markets. The more markets you include in your investment portfolio, the better. No other way to minimize the risks of market volatility.
Tangible assets are less risky than the non-physical ones
A year ago, it seemed that the trend of investing in cryptocurrencies and other digital assets will increase over time. However, the recent financial crisis proved these types of investments are promising, yet there are not resilient to market storms. In fact, losing quite a bit of money in stocks overnight stressed out many investors over the past year.
Many investors are currently looking for investment opportunities in real estate and agriculture. They aim to acquire tangible assets.
Even though tangible assets may undergo market volatility, the ups and downs are usually temporary. The worst scenario usually assumes receiving the income later than expected.
Emerging markets are more storm-resistant than the developed markets
Not once have we noted that the Covid-19 pandemic brought forth a new tendency- most investors opt for investing in emerging markets.
There are 2 reasons behind this trend. First, over the past year, emerging markets proved to be more resilient than the developed ones. That’s because the governments in emerging countries have more control over the financial tools. Second, investors tend to diversify their portfolios and the affordability of the investment opportunities in emerging countries makes it possible to acquire several physical and non-physical assets simultaneously.
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We are ready to address all your concerns and guide you through your investment journey. Check out our investment opportunities here or give us a call at (+374) 95 110 301. High return on investment guaranteed!