The Best Industries to Invest in for 2021
Investing in great new opportunities is something that all traders must prioritize every year. In 2021, the landscape of investment options has shifted as new businesses, brands, and consumer needs are taking form. Of course, this happens every year, but with the coronavirus pandemic changing the nature of our routines and working lives, there have been some unique and important shifts in the way consumer spending and investment strategies have developed.
There are some perennial winners that remain solid buys in a variety of investors’ portfolios, but some new elements have become modern favorites in today’s marketplace. The importance of diversification is larger than ever as uncertainty and continuous market shocks maintain their hold on the daily trading patterns of institutional investors and retail traders alike, but with a great strategy and a few rock-solid investment assets in your overall holdings, it isn’t hard to find great returns.
Consider Real Estate
Real estate is one of the most powerful investment assets that traders can get their hands on. With the foundation provided by a real estate trading seminar or presentation from a real estate motivational speaker, getting your start in this exciting and lucrative trading space is easier than ever. And, with the additional pressure that people are feeling in the present social atmosphere, buyers are more readily available and prices higher than at any other time in recent memory.
The real estate space is fast-moving and can give you access to unique and long-lasting dividends that can underpin the remaining elements of your portfolio with ease. Yet for many investors, jumping straight into the market directly isn’t possible or remains a daunting task. If you aren’t ready to get into direct property ownership, a REIT fund can provide the same basic exposure without the pinpointed risk that comes along with ownership of a single asset. REITs are investment vehicles that trade on the stock market and bundle hundreds or even thousands of individual properties together into one asset that defrays much of the risk associated with the ownership and management of a single property. Yet returns are often similar in scope to a hands-on real estate holding. This is a great option for those who are still thinking about getting into a property but don’t know where to start.
Heavy Industry and the Butterfly Effect
One way that investors analyze potential upside is through leveraging best practices in analysis and an understanding of how the market is reacting to certain real-world events and news release items. With this answered, identifying industries that will be impacted by those ripples the most is simple. One arena that stands out in the present world is the gold mining and precious metals, lumber, and gemstone extraction industries. Investors are doubling down on physical assets like real estate, gold bullion, and other, tangible holdings that they can physically trade at a later date. The stock market provides intense upside potential, but as a result of its more hypothetical and digital-driven composition in the modern age (companies no longer issue stock certificates, for instance), investors want a backstop against prolonged downward momentum.
Yet within the stock market, there are opportunities created by this turn toward physical assets, namely, the industries that provide those commodities to the marketplace itself. Companies like Alamos Gold (Alamos Gold Inc.) gain significantly in a market that’s driven to bullion purchasing surges over the long term. Alamos Gold Inc. (NYSE:AGI) is a Canadian multinational gold miner that produces hundreds of thousands of ounces of gold at each of its primary mining sites in Northern Ontario (Young-Davidson and Island Gold) and Sonora, Mexico (Mulatos Mine). Analysts predict a continued interest in bullion over the coming months and years, and Alamos Gold is certainly poised to take advantage of this increased demand. Alamos is breaking ground on a number of new mining sites as well in the U.S. and the Republic of Turkey that is set to provide ounces of gold at an industry-leading price per ounce extracted figures.
With these investment options in mind, making growth a habit is easy.