Keeping an Eye on Emerging Investment Opportunities
Canadian entrepreneur Simon Kronenfeld went from a dishwasher to a major force in the real estate industry by virtue of knowing how to invest his money wisely and make it grow. By keeping a diversified portfolio and sticking with the knowledge that not every fund will pay off but many good investments will, you can follow his lead in attempting to grow your money. Here are some of the top emerging investment opportunities that you should keep an eye on while you are looking for the best ways to invest in 2021.
Exchange Traded Funds
Most people know exchange traded funds by their acronym, ETFs. These funds allow you to buy into numerous companies that are all part of the same stock index. By focusing your investment on the most successful funds within that index, the ETF increases the change that your stocks will grow. One stock may underperform, but it is unlikely that they all will. An example of an ETF would be a fund that uses the S&P 500, which measures the progress of the 500 largest companies in America, measured by market capitalization. These businesses almost always see growth at a very reasonable rate. Using an ETF means that you don’t have to hitch your metaphorical wagon to one stock. Instead, you can focus on an entire index and reap the rewards of the most successful investments.
Real estate has long been a mainstay of profit for those in the know, and that trend continues in 2021. This is a field near and dear to Simon Kronenfeld’s heart, as it is what transformed him from a small business owner into a major figure in the Canadian business world. The key to success in the real estate market is that you have to think transformatively. Don’t look at what is there right now; see what could be. From there, you only need a solid plan to make sure that you don’t sink too many resources into a venture, thus enabling you to turn your investment into profit.
Real Estate Investment Trusts (REITs)
Real Estate Investment Trusts, or REITs, provide the mix of real estate capital and steady income from investments that Simon Kronenfeld absolutely adores. By choosing the correct REIT, you can get a 4-6% return on your dividends, plus any capital appreciation that comes on top of that. If you want exposure to the real estate industry but are worried about the illiquid nature of that market, you can invest in an REIT to get some of the liquidity that is a constant feature of the stock market. This essentially gives you the best of both worlds.
Initial Coin Offerings
Initial coin offerings are better known as ICOs but known even more commonly by the general public as cryptocurrencies. This market is quite risky if you enter into it blindly, but it offers huge potential for growth. The potential return on your investment makes this market too good to pass up, but you should avoid sinking a large portion of your wealth into these investments. Generally speaking, keeping single-digit percentage exposure gives you a chance to maximize the potential benefits while also minimizing the risks.
Looking over the career of Simon Kronenfeld provides a guide that you can use yourself when it comes to making yourself into a self-made person. Doing this successfully means watching emerging markets and acting quickly when they become profitable. The markets outlined above are very important ones to watch in 2021 and moving forward. If you remain aware, manage your risk carefully, and act quickly when you need to, you will find your investments paying off with surprising regularity.