Where to invest in 2021
This question is asked not only by newcomers to investing, but also by experienced investors.
And if for experienced investors the question concerns an overview of trends, since most of them have their own investment plan, for beginners this question sounds like “where to start a beginner in investing.”
Yes, many watched the crises of 1998 and 2008, the steep peak in the market in 2020, and I think no one wants to fall into the wrong trend or lose their savings by choosing the wrong asset.
I immediately hasten to calm down newcomers. There are basic principles for investing, and if you stick to them with your risk tolerance, you will keep your money at an appropriate level of risk.
One of the basic principles of investing is “don’t put all your eggs in one basket”. Everyone probably understands that focusing on only one asset greatly increases the risk
As a financial advisor, people with different backgrounds often come to me. For example, one novice investor had 100,000 rubles to invest. Without hesitation, he bought one share of a very good company for all this money. The company is good, but almost all of his money was in one single asset.
But stocks are not a static asset. Their price changes every day when it is traded on the exchange. You can’t even get rid of half of the assets in this one in order to reduce the risk. You can’t sell half of the stock. As usual, the price fell, and the novice investor grew anxious about his improvised portfolio. By the way, he allowed me to tell about his example, so that other newcomers thought and did not repeat his mistakes.
On average, shares cost from 2-3 thousand rubles, and for 100,000 rubles it would be possible to create a diversified, diversified portfolio by adding instruments with different levels of risk. By the way, I analyze this approach in our main course.
So, despite the current trends in 2021, I will answer the question “Where to invest for a newcomer in 2021” with a checklist:
- Invest small amounts.
- Buy simple tools. Bonds, shares, funds.
- Invest in different instruments.
- Do not rush to one asset to which the crowd runs and even recommends this or that blogger.
- Listen to various sources of data.
- Don’t buy tools just because they are trendy, trendy, investment is not a matter of fashion.
- Don’t chase super profitability. Because the higher the profitability, the higher the risk. I will probably disappoint you, but all these stories about passive income are a myth. You always have to work on an asset, even choosing stocks or bonds is work.
- REFUSE from trading in favor of investing. Trading is a profession for big capitals, everything that can be told about profitability in trading for beginners is myths.
- Define investment goals. Without a goal, there is no achievement.
- Define your risk profile and Draw up an investment plan and follow it.
Without a risk profile, understanding what and how you will invest, what ratio of instruments you will have in your portfolio, it will be difficult for you. A non-systematic approach either leads to losses or kills the business of investing.
But since I am known precisely for analyzing trends and understanding how the economy and markets work, I will not leave you without my brief overview of 2021 and the state of the world economy in general and the stock market in particular.
In general, 2021 is a continuation of trends, shaped by the constraints that arose in 2020. Understand that the challenges that were formed in 2020 have not yet been overcome in 2021 at the moment.
I talk about this on my live broadcasts and in my posts on my Instagram account and I keep repeating it. There is still an isolation of the real market, the world’s economies from the stock market, the market where trading takes place. And this gap at the moment, at the time of this writing, has not gone anywhere.
There are still risks of big changes in the market, in the price of assets, the likelihood of financial bubbles (watch my video review of the IT industry on Instagram, it is relevant). Therefore, especially beginners should be absolutely careful when making decisions when buying a particular asset. Do not rush into the pool with your head, make informed decisions and follow my broadcasts.