Is investing in 2021 a risk, an opportunity or a big risk?
The coronavirus pandemic has dominated the whole of 2020. One only hears from everywhere how much it has affected the functioning of the world economy. Restrictions have been felt in all sectors of the economy, whether in tourism, the arts or the computer sector. Even online casinos, where the game ‘Roulette 77’ has attracted a lot of visitors, have seen less traffic in recent months. However, everything seems to indicate that with the new year, the pandemic will also go away. There are already working vaccines for the virus, and it is only a matter of time until all countries have distributed them to the general public. This year, in economic terms, can already be economically wasted today. It remains to wait for what the next one will bring.
Positive information will certainly affect markets around the world. It is therefore worth asking ourselves what may happen in 2021 and what is worth investing in?
The rebound of the world economy
Despite the fact that most sectors of the economy have seen significant falls in value, one can look to the future with optimism. Most of the world’s governments have applied huge aid programmes at this difficult time, which has protected tens of millions of jobs in Europe alone. We all remember those spectacular reports from the world’s stock exchanges, when the biggest indices were gliding down as soon as the pandemic hit a particular region of the world. If something has fallen to the bottom and survived, it is only a matter of time before it rebounds. The world’s biggest brands, which have an unwavering position in the world, will certainly sooner or later make up for their losses and return to their former position.
The recession of the world economy is already a fact , and it is only a matter of the consequences of all those aid programmes that have cost a great deal of money. The Polish Government itself has decided to allocate over PLN 200 billion to saving the economy. Our country’s Gross Domestic Product is EUR 120 billion, which means that around 40% of Poland’s GDP was spent. Such money will eventually have to be repaid, which may take years, using various options which will primarily affect Poles’ pockets. It is worth considering whether this situation can be exploited in some way.
Investing from the New Year
Despite all the economic problems that undoubtedly await companies from all over the world, it is certain that they will all slowly improve and, consequently, valuable goods, currencies and indices will also go up. This is a real paradise for investors. If someone takes their chance and makes some good purchases, they can make a fine fortune.
When it comes to the world’s economies, their currencies and major brands, the most important factor today is the coronavirus. This was perfectly clear in the spring of 2020, when the pandemic appeared in Europe. When the first case of the coronavirus was announced in Poland, the exchange rate of the zloty went down, making those earning in dollars and euros happy with a rise of several percent. When the mood cooled down, everything started to return to normal. Therefore, the most important factor when it comes to investing in specific currencies will be how well the countries of the world are coping with the pandemic and how quickly they are distributing vaccines.
One thing is certain – many of the world’s most important indices over the coming years will go up. All that remains is the question – which ones and how long will it take them?
Investment risk after a pandemic
On the one hand, the market situation is starting to calm down and everything is returning to normal after the second wave of illnesses. However, there are many uncertainties that may significantly affect the functioning of the world markets. A year ago, no one imagined that, apart from war, something could have such a major impact on the whole world. Therefore, it is worth cooling down the enthusiasm and taking into account the unexpected twists and turns of events that could confuse next year. Apart from the conspiracy theories about vaccines, it is still not clear how they will work in practice and whether they will really provide adequate protection. As it happens in business – where you can make a lot of money investing – there is always more risk.
After all, from the perspective of 2020, 2021 seems to be a paradise for those who are able to sniff out the opportunity. If someone is smartly analysing the functioning of the world market , he will probably make at least small fortune. There is always risk in investments, and profits can be significantly higher than standard investments before a pandemic. The year 2021 will certainly be rich in interesting returns on shares and opportunities to make the business of the life. Just keep your hand on the pulse and every investor will be able to seize the opportunity.