The new year is looking to be a major turning point for many investors. Political, economic, and social changes are underway in earnest. Some of these factors are causing individuals to transform their investing strategies to take advantage of fresh opportunities and trends. What’s new for 2021? Here are just a few of the newest ways that working adults are putting their money to its best possible use.
Penny Stocks are Back
Shares that cost less than $5 each, often called penny stocks, are one of the hottest ways for working folks to get into the stock market. Gone are the days when pennies were only issued by unknown startups. Today’s penny stocks are among the most popular, fastest moving shares available. Many are issued by financially sound startups that have the potential to grow quickly and by percentages that are often hard to believe. Plus, with many people now directing their own portfolios via online brokerage firms, these low-priced shares are enjoying a new generation of enthusiasts.
Social Investing is Growing Rapidly
If you haven’t yet heard of social investing, you’re in for a surprise. Many of the larger broker platforms now let new users follow experienced investors. That means even if you know nothing about the market, you can sign on with a social trading account and simply copy what the lead trader does. Even better, new customers can research the track records of all the site’s top traders and choose one they’re comfortable with.
Day Trading is Now Available to Everyone
Not long ago, if you wanted to engage in day trading, you needed an account with at least $25,000 in it, had to be cleared by the brokerage platform, and often had to meet other qualifying criteria. No more. While there are still rules about standard stock share day trading, it’s now possible to use instruments like CFD’s (contracts for difference) to engage in day trading. In fact, millions of new brokerage clients study day trading strategies for beginners for a few weeks before starting out. After that, and some sessions on a simulated trading platform, they’re ready to go.
Alternative Investments are Finally Breaking Through
The alternatives to traditional stocks, bonds, and mutual funds, now collectively called alternative investments, (AI’s) a fast-growing category for people who want to diversify their holdings. What are the top alternatives? They include entries like fine works of art, collectible cars, wine, and the oddball precious metal, rhodium. Each AI category has its own cheerleaders, but art and wine are probably the list toppers because they’ve been around so long and there are ready markets for buying and selling.
Cryptocurrencies Have Gone Mainstream
Just a few years ago, it was hard to find a broker that allowed clients to buy or sell cryptocurrencies within a standard account. Now, just about anyone can add Bitcoin or similar cryptos to portfolios. And with or without a brokerage firm at your side, it’s possible to purchase cryptocurrency directly from any of several online exchanges. Prices are still volatile in this segment, but people are finally recognizing these virtual forms of money as legitimate investment vehicles.