Making plans for the future is an ignoble thing: there is too much uncertainty ahead, including in the stock market. However, there are always investment opportunities that are worth looking at carefully! The yield always follows the risk, the higher the yield, the higher the risk. That is why it is so important to find a balance between them.
What areas should you pay attention to?
This direction never loses its relevance, and recently it has been developing very actively. Also, the new US President Joe Biden traditionally supports the policy of accessibility of medicine for all segments of the American population and is likely to continue working in the development of the medical program.
In the 21st century, global business has realized that it is impossible to develop without regard for the environment and the interests of people. And now analysts around the world believe that companies that are guided by the ESG principle. Given that this area is just beginning to develop, it has a very high growth potential.
⚡ ️ Technologies and telecommunications
Technologies are developing at a huge pace, and the current business environment has opened up the Internet space. There is a strong uncertainty in choosing one company, so in order not to give obvious preferences to one company and be in the topic, it is worth considering the indices of technologies and telecommunications!
And another thing: after 11 years of the bull market, it is reasonable to have protective assets in your portfolio.
There is growing unrest in the world regarding the growth of inflation, the Russian Federation has already begun to raise the key rate. Similarly, the US Federal Reserve system raises its expectations for inflation and begins to prepare for a rate hike. Usually at such times, people begin to stock up on precious metals.
⚡ ️ Long bonds
Against the background of instability in the financial markets, the negative consequences of trade wars and the growing risk of recession in developed economies, it is worth paying attention to long bonds, which will be able to support the portfolio in the event of a fall in stocks. However, there is also speculation here, since it will be important to sell the asset at the right time.
⚡ ️ Short-term bonds
In fact, this is a cash reserve that can be used in tense moments of the market to average your position in fallen assets.
To collect a well-diversified portfolio of the above assets is more than enough! But all this is not an investment recommendation! Since I do not know your goals, nor your propensity for risk, and much more!
Always analyze the securities and buy and sell only in accordance with your strategy.
Don’t you have a strategy yet?