Knowing where to invest for short-term and long-term growth is a key, each year new factors affect where and when you should invest to maximize your investment.
2020 has been a difficult year, to say the least, leaving many seasoned and newbie investors pondering on exactly where to park their money in 2020. In this article, we will outline where to invest and the best investments to add to your portfolio this year.
If you are already invested in stocks, you are ahead of the game. Of course, you may want to modify your portfolio given recent events and market trends.
But, for those who are new to investing, this is a great time to give it a try. Looking back, 2019 was a massive year for the stock market. Data indicated that the market was up by an astronomical 29% for 2019.
Take the time to analyze the market, be aware that certain market sectors will slow down and so it’s necessary to look at other market sectors. For example, the healthcare sector is a viable sector to consider because historically, healthcare seems to remain robust when other markets destabilize. Last year, we did witness a bit of a downturn in the healthcare sector, however, SDPR S;P Biotech ETF (XBI) showed an impressive return of nearly 30%. Healthcare is certainly one sector to consider.
If you don’t mind risky investments, take a look at the energy sector. This is certainly a risky investment as there has been a definitive downturn in the energy sector in the past few years however, it is certainly a sector to consider if you are looking at long-term growth. Take a look at the Vanguard Energy ETF (VDE) for energy investment, bear in mind, however, it is a risky investment but could pay off significantly if you are willing to take the risk. Also, consider the fact that the clean energy sector is growing as climate change is becoming a popular global concern.
Real Estate Investment
Real estate investment is important for any long-term investor. If you are considering purchasing properties for rental purposes, you should consider the fact that real estate investment is capital-intensive and you would require a large amount of capital to start or broaden your property portfolio.
One of the best ways of investing in property without putting up too much capital is to invest in real estate investment trusts (REIT) instead. Consider a mutual fund such as a REIT like an apartment REIT. One well-known apartment REIT is Equity Residential Properties Trust. They invest in over 250 properties in high-end locations such as New York City and Southern California, as well as Denver.
Apartment REITs are a good place to start if you want to invest in properties, but make sure you do your due diligence and watch the housing market carefully as the current economy is rather unstable.
Invest in You
When considering investment opportunities, we often overlook the fact that investing in ourselves can be the biggest and most profitable investment.
You must invest in yourself and create a strong asset instead of a liability. Here are a couple of ways you can invest in yourself.
- Learn something new and increase your income
- Develop the skills you already have to advance your career and increase your income.
Increasing your skills and boosting existing skills can be one of the best investments you can make. Use platforms like Skillshare, Udemy, and even YouTube to acquire new skills and gain new knowledge.
If you want to dig deeper and invest in yourself further, consider taking a fully certified course online. The more skills you have, the more money you can make. Boost your income by increasing your capability.
For example, are you a copywriter? Instead of generalizing your skill-set, why not take an intensive course in SEO and learn how to create content specifically for search engine optimization purposes. Once you learn this skill, you could double or triple your income.
Invest in an Extra-Business or Side Hustles
Invest in a side business or side hustle to increase your income and to strengthen your financial muscle. Consider an online business that does not require a significant upfront investment.
When it comes to side businesses, it is best to consider ventures that are low risk, low investment with large returns.
Here Are a Few Side Hustle Ideas To Consider:
Remote English Teacher
There are plenty of people online looking for ways to learn or improve their English skills. Remote English teachers can earn up to $25 per hour teaching English to both children and adults.
There are lots of companies both online and offline that need content for their websites or to boost their online presence. You can make $500 to $5000 or more per month working as an online content writer.
This concept is very similar to dropshipping but with drop servicing, you promote another company’s services to potential clients and you either take a small commission or you increase the price slightly to make a profit.
Many companies have no idea how to use Instagram to market their businesses. Therefore, you could offer your services as an Instagram marketer to help boost companies’ online presence using Instagram as a tool.
Finally, Pinterest is a massive marketing tool that many people have no idea how to use. Businesses are leaving thousands on the table by ignoring the little-known Pinterest marketing secrets. If you have some knowledge of Pinterest, you can market yourself as a Pinterest marketing consultant.
Secure Your Financial Freedom
2020 has been a tumultuous year so far, however, investing in stocks, property, yourself, and other investment options should still be considered a viable way of securing financial freedom. Use the investment ideas in this article to strengthen your financial muscle and boost your investment portfolio for the long-term and short term growth.