What should I invest in, in 2021? How can I protect my assets?
Contributed by Caporaso & Partners Law Office
02 December, 2020
What should I invest in, in 2021? How can I protect my assets? These are the prevailing questions from the crisis due to the pandemic. Here are the answers.
As in every recession, there are winners and losers, there are also two prevailing questions: What should I invest in, in 2021? and How can I protect my assets?
Those who have kept working and can count on savings, are taking advantage of this phase, but the majority don't dare invest for fear of losing the little or lot that they have.
The projections of organizations like the International Monetary Fund FMI) are talking about a global economic contraction of 4.9% terminating 2020. This takes us into an uncertain 2021. So, only those who can interpret the crisis will become the new millionaires.
The unusual rise of real estate in full crisis
In some countries, an unusual peak in real estate has been detected, while there are families who cannot pay their mortgages and tenants who don't pay rent. This is because there are those who take advantage of historically low interest rates on mortgage loans.
Low interest rates have been the main fuel that has given rise to the purchase of homes. Another reason is that, during the isolation period, those who have the possibility look for a more comfortable lifestyle.
Some "experts" have applauded the tendency and asserted that it turned the interest for purchasing homes into a patrimonial and investment value. Nothing is less true!
Only someone insane would purchase real estate as a patrimonial and investment value at this time. Most countries have adopted laws that allow tenants to not pay rent and have suspended evictions.
There are landlords who live on their rent money and have been penalized. Not only have they lost their rents, but have also had to pay for electric, water and condominium expenses for default tenants. Ask them if having real estate these days is a good business,
Definitively, purchasing real estate at this time is profitable only for those who buy with a mortgage and have an extremely stable, paying job.
So then, what should you invest in, in 2021?
Everything depends on 3 factors:
1. The amount of money you have on hand
The amount of money you have available in the bank doesn't always coincide with what you have on hand. You always have to keep a reserve, carefully calculate your set earnings and keep possible emergencies in mind.
2. What risks do you want to take?
Calculating risks is important because things don't always work out the way you think they will. For example, if you invest in a pharmaceutical company that is developing a vaccine, you're gambling. If the vaccine works, you'll earn; if it doesn't, you can lose almost everything.
3. What do you know how to do?
What one knows how to do is important, because if you are a baker, you will make good bread, if you are a shoemaker, who knows if it will come out as well? I always advise people to not go into a business they do not understand, unless they have money to pay an expert or have a partner who is one.
The 10 sectors that have potential if you are asking What should I invest in, in 2021?
Now, let us go analyze the sectors that have the most potential in this moment of world-wide economic contraction. I will briefly give you the pros and cons. If you do not have a lot of capital, see the final list of activities require the least investment.
1. Delivery, home delivery, courier service, transportation logistics
This is a fast-growing sector. Delivery will reach 23 thousand million Euros in billing in Europe by 2023. This industry billed 74 thousand million dollars in 2019 and has an estimated annual growth of 15%, up to 2025.
However, the large groups have commandeered the delivery distribution. Amazon has invested in Deliveroo, a home delivery company that already extends to 14 countries. Meanwhile, uber has invested in Uber Eats, a home delivery network that is present in 13 countries. So, if you don't have suitable capital, you can't compete with the large companies. Nonetheless, everything unknown about delivery, especially APPs, web services for the establishments and advertising platforms are a sector worth looking into.
2. The pharmaceutical industry
You can invest on the market, or set up a pharmaceutical, medicinal or medical products distribution or import business. It's a million-dollar business into which it's best to enter with large amounts of capital.
3. Clinics and analysis laboratories
If you have sufficient funds, this is the best time to look into this field.
4. Food preparation
The lockdown has brought food preparation for private citizens, small businesses and catering businesses into vogue. With little funds, suitable premises and the necessary sanitation licenses, you can build up a business that has a future. There are a lot of possibilities for a business with food preparation, cold cuts, pastry shops, bakery, etc.
5. Producing disinfectants and cleaning products
In this case, as in food preparation, you can begin with just a little. You will need a good supplier or a chemist to prepare your products. A good system is to sell products like detergents, disinfectants, etc. by the liter or by weight.
6. The production of medical supplies
Here, you need a major investment because you need to have machines and many operators so that you can have competitive prices, You can always engage in importation purchasing by containers factory direct.
7. The stock market
For those who like to gamble, the stock markets are rising, and, with experience and good luck, you can make good deals. Or lose everything.
The cryptocurrencies still do not have the diffusion that they deserve. On one hand, it is due to mistrust; on the other, it's due to the fact that its prices fluctuate, perhaps even more than shares on the stock market.
In the last 24 months, Bitcoin has gone from 3,900 USD to 18,900 USD, meaning that whoever bought at the lower price has earned 400% these days. The tendency is surely on the rise. The problem is that whoever wants to sell at a low level can lose a lot. If you are looking for protection for your assets, I would say it's safe to keep 20% of your funds in Bitcoins or other cryptocurrencies.
9. Publicity is the most accessible field to invest in, in 2021
Publicity is the soul of commerce. This is an Italian proverb; I would say one of the most accurate. The American marketing companies advise investing 30% of your earnings in publicity. Latinos still view publicity as an expense and not as an investment. However, without a doubt, every type of business needs publicity.
You can venture into this field with a ridiculously small investment. For example, creating pages or groups on Facebook and Instagram. Or administering social networks, viral publicity campaigns and much more.
However, if you have a small amount of capital and earn by working, you can set up an announcement platform and have your own business producing money passively. If you don't know programming and website design, you can hire a web master or acquire a keys-in-hand platform.
10. Programming, website development, APP, APK, SEO services
This field is in vertical ascent. If you aren't a programmer or webmaster, you can hire or partner with one and take on the commercial part. Remember that programmers are rarely good salesmen. You can set up an agency with a small amount of money and offer programming, website development, APP, APK, SEO services and much more.
We could write dozens of books on what subjects to invest in during 2021 and how to protect your assets. Unfortunately, space doesn't allow us to continue. Plus, the idea is to offer you some ideas; you have to make your own conclusions. However, we're still missing the most important subject: how can I protect my assets?
How to protect your assets from third parties
If you have set up or are going to set up a business, you're going to have earnings and protecting your assets and capital is important. I would say it's a part that's as important as a careful investment.
In the work field, your assets can be attacked by creditors, employees, partners, customers, spouse, tax office, and many others.
This is why it's important to protect your assets by means of offshore companies, foreign bank accounts, contracts, loans, mortgages and instrument that can protect all or part of your assets.
Therefore, I don't advise you to create a protective structure by yourself. An expert will not just give you solutions according to the laws, but which can help, with his experience, create a TaylorMade structure for your needs.
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