investment strategies
Since the start of the year, I didn't buy much except my favorite ETF since i used to be expecting a correction. i'm not a financial adviser, this is often not financial advice, and everything that's said during this blog is for educational purposes. In order to form the simplest financial decision that suits your own needs, you want to conduct your own research and seek the recommendation of a licensed financial advisor. So do not blindly do what I say in this blog. because i am not a authorised advisor . I just share what i know through these blogs.
1. QQQ
The first investment that I believe is going to do great this year and in the following few years is QQQ ETF. This is not your typical S&P500 ETF but slightly different. If there is something we have learned from the past year, the tech will grow much faster. The amount of money that's now poured into the new tech is unbelievable. And as we are moving into this digital world of 5G, with self-driving cars and artificial intelligence, the tech is undoubtedly going to have a much bigger impact on our lives. Of course, the typical S&P500 ETF also invests in tech, but QQQ is almost just about tech because it invests in the top 100 largest international and domestic companies listed on the Nasdaq stock exchange. Unlike other exchanges, The Nasdaq is known for technology and innovation and is home to the internet, biotechnology, and other companies at the cutting edge. As such, stocks listed on the Nasdaq are considered growth-oriented and more volatile. Of course, that presents a higher risk; however, that also presents a bigger opportunity, and since tech is clearly going to play a much larger role in our lives in the coming years, the ETF is expected to grow significantly higher than other ETF. While SP500 grew by 18 percent last year, QQQ grew by 50 percent. That's a huge difference. That doesn't mean that it's going to continue rising, but if you believe that tech is going to get even bigger where we are going to have smart cars, homes, cities and everything connected through 5g in the next decade or so, then this is the ETF to stick to. It includes within itself all the tech companies you can think about, from Tesla to Nvidia to Intel. If one of them comes up with a revolutionary product or service, you will definitely benefit from it as long as you are an investor in this ETF.
2.Quantumscape Corp
The second stock that I believe that huge potential is Quantumscape Corp, but it's very risky, so please do not invest in this company. If there is one technology that is certainly going to play one of the biggest roles in the world is undoubtedly batteries. Batteries are already huge, but in the next two decades, the world is going to shift to a battery-based society, and that's not because we want to do that, but rather we have no other choice. Climate change has left little choice for us. Shifting to renewable energy is one thing but storing that energy is a whole different story. Think about it, less than 2 percent of cars that are produced annually electric, and we already have a shortage of batteries. How many batteries do you think we need to be able to make the other 98 percent of cars electric. Even if starting from next year every car that will be produced will be electric. We need like 15 to 20 years to replace all existing engine cars with electric. Tesla is, of course, at the head of this industry, but Tesla uses lithium-ion batteries, which are great but preset fundamental problems. They are expensive and take a long time to change, but Tesla solved that problem with a charging station in your garage so that you can change your Tesla overnight while you are sleeping. That's a great solution; however, if we want to go all-electric, we have to build more effective batteries, and that's where Quantumscape comes into the picture. Traditional lithium-ion batteries use a liquid electrolyte. The lithium dissolves therein liquid, drifts through the liquid, and gets the anode and the other way around . But Quantumcape has replaced that liquid material with a solid material that will make it possible to use a lithium metal anode. That's going to make it safer and double the energy density and also make it faster to charge. In other words, an equivalent battery will provide you with a double range. Another disclaimer, i'm not an engineer, so if I got something wrong there, please correct me. But the technology seems very promising.As the number of electrical cars is increasing, this company are going to be the main player during this industry.
3. Land
land you recognize what's the foremost important thing when buying a house. Your mortgage rate, even a small difference, goes to be huge over 30 years. Getting a 0.5 lower rate will prevent a fortune. Last year, since the fed decreased the interest rates, getting a hard and fast mortgage was probably one among the simplest decisions you'll make. But, it had been risky because the market might be overvalued now. An overvalued market means a correction might be on the horizon. Besides, when most are buying, it's difficult to seek out an honest deal, nonetheless, possible.Mortgage rates went as low as 2.5 percent last year. as compared , mortgager rates were 4.9 percent back at the top of 2018. Even in 2019, even before the pandemic, they were floating at around 3.5 percent. So getting a mortgage at 2.8 or 2.9 or maybe 3 percent is really an honest deal, especially if you spend a while finding an honest deal within the market. Since buying a home is probably the most important single purchase in most people's lives, getting a lower rate is perhaps the simplest investments one can make it. i'm almost certain that within the next few years, the rates will just keep rising.
4. Large tech companies
Any big stock If we are talking strictly about 2021, then i feel that any investment in any of the large tech goes to possess a very good return this year. It looks like everyone already agrees that inflation is simply getting to keep rising, so keeping cash goes to harm . But holding stock in any of the most important tech companies is immune against inflation because regardless of how briskly the rate of inflation is, these stocks are getting to rise even faster because we're getting to have tons of investors who need to keep their cash somewhere. And one among the places they go to stay their money is that the big tech. I've made a video recently talking about why the stock exchange could crash because it's a minimum of slightly overvalued but by a crash, i do not mean anything like what happened in 2020, but it might be during a slightly bigger correction compare to what we've seen in recent weeks. If you haven't invested during the correction, then you almost certainly missed an excellent opportunity because tons of stocks, especially the large tech, were down by 10% give-and-take. I personally invested in many companies that I even have already invested in before and invested during a few more that I even have shared with my patrons on my Patreon page.
5. VTI
VTI I even have already suggested multiple SP500 efts in previous videos, but i might note that they are not the sole options. there's a spread of ETS, and one among the foremost popular ones that I personally invest in is VTI. It doesn't just invests within the sp500 but within the entire economy of the us , ranging from small caps to mind caps to largest companies within the market. So it just moves with the market. It doesn't grow like falcon nine, but at an equivalent , it is a safe bet. it isn't just an honest investment for this year but pretty for the other year. it's a really low expense ratio which makes it an ideal option for long-term investments. Last year it grew the maximum amount because the s&p500 did, sometimes it's higher sometimes it lower. I personally invest in it monthly just to stay my portfolio a touch diversified.
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