Stable Investment Ideas For February 2021
February 8, 2021 (Investorideas.com Newswire) The stock market is always a little bit unstable, but it's started 2021 in almost unprecedented form. It's not often that news about stocks and shares dominates mainstream news headlines, but you can't possibly have missed what happened during the first month of the year. Using Reddit for communication and a variety of mobile apps for execution, organized amateur traders have plowed astonishing amounts of money into GameStop and AMC and effectively made shorting unfeasible in the short term. The viral trend is already scheduled to be discussed before Congress in the United States of America, but it's made trading somewhat perilous in the meantime.
Almost everyone who gets involved in stocks and shares knows that there's a chance they could lose their money, but that doesn't mean they're necessarily open to enormous risks. Given the level of uncertainty in the market at the moment, it might make sense to stick to safer bets until things calm down. If that sounds like a good idea to you, we've come up with a brief list of industries and areas you might want to consider investing in.
As always, our articles shouldn't be construed as financial advice. You should talk to your adviser before you make any decisions about investing money, and only you can decide if an investment is right for your personal circumstances. The topics we're about to discuss here are presented for information only.
We'd never normally suggest using Bitcoin - or any other cryptocurrency, for that matter - as a 'stable' investment choice, but we can't ignore the fact that the value of Bitcoin is going through the roof at the moment. Having dropped below $10,000 per coin at one point last year, it went above $40,000 during the first week of January. This is the strongest surge we've seen since 2017, and there's no suggestion that it's over yet. In fact, the biggest barrier to investing in Bitcoin for newcomers at the moment is that it's so expensive to get started. If you have the means and you've never dabbled in cryptocurrency before, this might be the best time to get started. The price can vary dramatically - so consider yourself warned of that - but most analysts are predicting a very strong twelve months to come for the original crypto coin.
We know people have been beating this drum for a decade or more, but the rise of renewable energy is coming. Following the Keystone XL pipeline's cancellation by the new Biden administration in the USA, its time might have moved even closer. The UK, in particular, is creating ever-friendlier policies for green energy companies, including a plan to become carbon neutral by 2050. Wind power is expected to be a key investment area in the country in the attempt to reach that target, and so expect to see steady growth in firms involved in that sector during the year ahead. The anticipated gains won't make you rich overnight, but slow and steady growth over the next 12-48 months is a realistic possibility.
When all else fails, turn to gold. That's been standard investment advice since time immemorial, and there's no reason to change it now. The price-per-ounce of gold increased by 25% during 2020, and while it might not increase by the same amount in 2021, another rise above 10% isn't out of the question. That's a better rate of return than you'll get from most mainstream stocks or shares. When it comes to gold, the rule of thumb is that when the stock market goes crazy, people revert to gold for safety's sake, and its value goes up. Given how crazy the market is at the moment, we expect a lot of people to funnel their money into gold and gold-related stocks, so there's good reason to believe that further sharp rises are on their way. Don't put all of your eggs in one basket, though - gold should never make up more than 10% of your portfolio at the most because of its volatility. When things calm down, prices will almost certainly drop again.
Online slots websites and casinos have been demonstrating sustained growth for much of the past decade but go largely ignored by investors. We're not sure why that is. Perhaps it's because investing in stocks is already a gamble, and so gambling on gambling companies might be seen as a step too far! There's a key reason we're making this suggestion, though - access to online slots is about to improve considerably. Google has just announced that it's going to allow online slots and casino apps in its Play Store for Android devices, meaning that millions of people will be able to play online slots through their phones for the first time. More customers mean more money, and more money means better performance. Ironically, an investment in this market could mean you're taking less of a gamble on online slots than the people who actually play them.
The British Housing Market
British investors have known about the opportunities here for some time, but this is a good time to start paying attention if you live outside the UK. The British Government has temporarily done away with stamp duty charges on properties worth less than £500,000, making the market more attractive to buyers. The move resulted in an average increase of more than seven percent in UK house prices during the final six months of last year. Demand for homes currently outstrips supply in the UK, so the market is bullish. We might see changes when stamp duty is restored after the end of March 2021, but that remains to be seen, and you could always revise your options at that time.
At the risk of sounding like we're repeating ourselves too often, you shouldn't invest in any of these areas purely because we've suggested them. They're interesting topics to discuss with your professional advisor, though, and if you and your advisor decide that an investment in one or several of them might be right for you, there could be money to be made. Don't let all the talk of chaos put you off - unless you make your money by shorting stocks, there's still tremendous value to be had if you go out looking for it!
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