2021 Investments: What Should Investors Be Watching for This Year?

Posted On Tuesday, 08 June 2021 20:54

The years 2020 and 2021 have been tumultuous years when you consider a global pandemic, the near shut down of most industries, and the fast advancements in both technology and pharmaceuticals. Just two short years ago, people were not watching companies such as Zoom when it came to their investment portfolios. The stock market has seen some drastic changes since the onset of COVID-19. One site to watch closely is HTZ stock.

Real Estate Investments and Rentals in 2020 and 2021

With such uncertainty combined with hopefulness for a new normal, there are plenty of things that people are left wondering about in regards to their investments and futures. Prior to COVID-19, it was almost a sure bet that someone could make money in real estate. Many people enjoyed having rental properties and having an additional income from those properties. With the freeze on rent payments, it left a lot of property owners in a lurch. The banks still wanted the mortgage payments, but they were not able to provide them due to rent payments not being made. Evictions were forfeited and this made it even more difficult to find good tenants.

On the flip side of the real estate market, while it may not have been ideal for landlords, it has been substantial for real estate agents. People have been forced to spend so much time at home that they have noticed their need for a new residence

The shut down caused a decrease in the number of houses being built and drove up the value of the currently existing homes. Many people in busy cities sought out homes in the surrounding suburbs or even more rural areas. 

Those who are selling their homes are experiencing increased amounts of potential buyers, bidding wars, and offers far above asking price. As areas experience opening in phases from the pandemic, the gradual increase of homes being built is occurring. This means all of those landlords that survived the pandemic without having to give up their rental properties are now seeing an influx of potential renters that are willing to pay prime rental rates.

Stock Market Investments

The stock market has also seen so many variable changes in 2020 and 2021. Those who held stocks in the travel industry were almost guaranteed constant returns on their investments. Who could have ever predicted that cruise ships, Disney, and travel lodging sites would plummet in the stock market? 

People were almost always going on vacations and enjoying travel. In the reverse, those who invested in pharmaceuticals and video conferencing sites such as Zoom saw quite the increase in their investments because those became the most popular investments.

Smart investments during the pandemic were made by those who were still employed and able to invest. Essential workers did not see a decrease in their earnings. Many were able to actually work more and earn more. This gave those blue collared workers the opportunity to actually jump into the stock market and purchase stocks while they were low. 

Those who were finally able to purchase stocks that were once popular, such as travel and vacation related businesses, were able to get those stocks at a reduced rate and will merely need to sit and wait as they gradually go back up.

Other Investments

During the pandemic, people also purchased cryptocurrency. This saw a surge in value as the U.S. dollar saw a decrease in value. Those who were wary of the cryptocurrency found alternative investments such as silver and gold. Silver and gold are continually going back and forth in value and worth but are recognized worldwide as valuable. It is a sure investment to acquire gold or silver since it's value will not drop as some currencies may experience highs and lows.

What Does the Future Hold?

While no one has a crystal ball and is able to see into the future, there are a few things that we can be sure of. The world is starting to open back up. This is the time to buy once popular stocks in the entertainment and travel industries before they rise to the unobtainable prices they once were. It is also the time to start looking at technology and pharmaceutical companies for investments. 

The housing market will continue to rise due to the fact that there is still a shortage in both work crews, lumber and other building supplies. If you are considering selling your house, meet with a realtor and have a market analysis done on your home. Real estate and the stock market are still wise investments in 2021.

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