2020 has been a difficult financial year for many. Jobs are scarce, incomes and hours are dwindling, while the markets have struggled too.
Working out where and what to invest in has been as tricky this year as any (and as important too). But there are good investments to make out there if you know where to look, so you can feel more comfortable in your finances during such uncertain times.
Looking ahead to 2021, you can plan to put yourself in the best position to withstand any uncertainty that next year brings. Here are some of the best investments to make in 2021.
1. Cryptocurrencies
Cryptocurrencies have been a volatile investment and remained an unknown world for many. Bitcoin is probably the most famous, but there are loads of others out there like Litecoin, Ethereum, and many more of various sizes.
Is Litecoin a good investment? What about Ethereum? In such a new and volatile market, it can be difficult to work out whether to invest or what to invest in. In fact, 2021 might be the best year of all to invest in cryptocurrencies.
Throughout 2020, cryptocurrencies generally thrived amongst a poor economic outlook. The uncertainty encouraged many people to invest in crypto to hedge against the struggling markets and economy. Decentralized finance has thrived, and it looks like cryptocurrencies will again thrive.
Brexit, potential fallout from the presidential election, and any other further uncertainty will likely lead to further shifts towards non-standard assets such as these. Big hitters like Bitcoin and Ethereum are sound bets for 2021, while Litecoin is also definitely worth considering in 2021, particularly if you invest for the first time.
2. Remote Working Firms And Software
This year has seen a marked turn towards home working as conditions limit how much we can all go to the office. So far, offices have adjusted well with little preparation, and many are likely to continue this practice in the new year. Working from home will likely continue as bosses know they can trust their employees to work from home.
As such, it is more than likely that firms that enable remote and home working will thrive in the coming year. Just think about Zoom. This time last year, the public had scarcely heard of the video-conferencing software, but the name is now a verb and a noun for meeting up remotely, and it is valued at more than the world’s biggest airlines. Just think if you’d invested in Zoom stock last year!
Next year, in preparation, consider buying stock in firms that could benefit from the growth in home working, like video-calling and communications technology and cloud-based software.
3. Crafts
For one reason or another, most of us spent more time at home during 2021, often with time to tend to hobbies old and new. Crafts and hobbies have thrived in this context, and so have sites like Etsy and Pinterest.
Pinterest enables people to share inspiration for home decor and projects and recipes for all those loaves of bread; you see people baking on social media. Etsy is an online platform for buying and selling homemade arts and crafts. Both have seen their users and revenues rise sharply in 2020. There is every reason to suggest this will continue in 2021, making both sites good investments.
Conclusion
During these uncertain times, it is important to think smartly about your investments in the coming year. Even if you don’t choose these three areas, if your investments address a need stemming from the growing uncertainty — as these do — then they are likely a sound bet.
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