The best investment opportunities in today’s volatile economy
It would be fair to say, 2020 has been a year like no other. From the global tumult caused by Coronavirus to the election debacle of Donald Trump refusing to concede losing to Joe Biden, there has perhaps never been more doubt and insecurity in the world than there is today.
With the long-term economic effects of the COVID pandemic only just starting to become clear, markets around the world remain extremely nervous for the future, making opportunities for safe investments thin on the ground.
However, while there is undoubtedly more volatility than normal in the world right now (and it can often seem difficult to know where to put your money) there are some markets that have continued to buck the global downturn this year.
Investment in tech companies
While the global economy has contracted pretty much across the board, the larger tech companies have continued to thrive over the last year. As the world went into lockdown, our reliance on computers, IT and technology increased exponentially with the value of the larger tech companies rising steeply as a result.
Apple shares currently sit around$117.34(slightly down on the high of $134.18 in September, but still considerably higher than $75.09 at the start of the year). Meanwhile, stocks in Google’s parent company, Alphabet, have also performed equally well with a current increaseof18% over last year. Microsoft too has performed well, recently reporting revenues of $37.2 billion thanks, in part, to the release of its updated Microsoft Office 365 software.
In terms of growth, few sectors offer a more attractive investment than tech; but you must keep a close watch on your stock to ensure you buy and sell at the right price.
Investment in gold
Gold has long been viewed as the world’s most secure investment. Indeed, as a commodity, gold has been valued for hundreds of years and it continues to hold its worth better than almost any other investment.
While the rewards from investing in gold are never particularly large, it also avoids the typical boom or bust scenario that so often plagues other investments, therefore making it one of the safest places to put your hard-earned cash.
The popularity of gold as an asset shows no signs of abating and it’s now possible for even small-time investors to buy the mineral with a number of new online shops opening over the last few years. Sites such as nuggetsbygrant.com offer a quick and easy way to invest in real gold nuggets which you can then store securely at home or in a bank facility.
Gold is such a secure stock that most professional investors advise holding at least some of your portfolio in gold bullion to offer a security backstop. In short, if you want real safety (probably without making huge gains), buying gold is one of the best investment choices you can make.
Investment in Bitcoin
The massive growth of Bitcoin continued through 2020—even if it has seen an extremely volatile year. At the height of the pandemic back in March, Bitcoin was trading at just over $5,000. Since then, it has followed a mostly sustained upward curve, peaking this month at over $18,500 on November 22nd.Many investors now suspect Bitcoin could be on the verge of topping out, meaning careful price-watching could result in the opportunity to purchase low and turn a profit.
All investments carry an inherent risk and stocks can rise as well as fall. However, there are still ways to mitigate the danger of loss by speculating well. Just be sure to remember downturns can and do happen and only ever invest what you can realistically afford to lose.