Investment Goals For 2021
2020 was a year filled with uncertainty. The uncertainty surrounding infection from a highly contagious disease and the economic uncertainty arising out of the pandemic wreaked havoc on people’s emotions.
It reminds me of prison escapees who eventually turn themselves in. When asked “why?” most simply explained they were tired of running, tired of the uncertainty. At least in jail, they knew what to expect. They didn’t have to wonder what or who was around the corner.
I saw this first-hand with the COVID-19 pandemic. I’ve had friends tell me all the time how sometimes they just wished they’d just get COVID so they could stop living in fear. It was the uncertainty that was killing them.
How valuable is certainty and peace of mind to you?
2020 was a year of financial turmoil and uncertainty. It was a difficult year for many who wondered just how they and their families would make it financially. That waiting and uncertainty was a tremendous burden to bear.
Do you desire certainty when it comes to your finances and investments?
What would you do to have the peace of mind of knowing that you could have a stable, consistent, certain income no matter what the economic environment?
It’s a new year and a new outlook and, most of all, it’s a new economy.
Many industries are struggling. While many industries like tourism, hospitality, and entertainment will take time to return, jobs in other industries may never come back. Retail, warehouse, factory, and transportation jobs are the most at-risk for automation when employers seek cost-cutting solutions through machines. When the machines take over, those jobs aren’t coming back.
The economy is shifting with long-term winners and losers certain to emerge. Your investment portfolio should reflect the shifting economic landscape. I’m not talking about jumping on the latest fads. I’m talking about investing in lasting long-term trends.
Why? Because investing in long-term trends produces certainty and certainty breeds consistency. In a year of uncertainty and turmoil, those who had already shifted their portfolios to latch onto long-term trends were able to ride out the storm.
How? They latched onto income-generating investments with excellent long-term prospects to ensure recession-proof income. In other words, to avoid the uncertainty that wracked the brains of many Americans in 2020. Does certainty sound boring? I wouldn’t underestimate its value.
Stop investing like the middle class unless you want to be stuck in the middle class.
What am I talking about? “Buy low, sell high.” That’s the mantra mainstream investors live by. They rely on timing in a consistently futile attempt to beat the stock market.
But why do so few of these investors succeed? Because the stock market is efficient – meaning any relevant information about a public company is available to the investing public with any new information instantly disseminated.
There is little chance for Joe Investor to leverage any information advantage to time investment to beat the market – unless that information is insider information, which is illegal. All this makes gamblers out of stock investors because whether a stock’s price goes up or down is a guessing game that nobody has mastered – not even those tech and analyst heavy mutual and hedge funds that consistently fail to beat the market.
Investing in the stock market is investing in uncertainty. You may think a stock’s price will go up but you’re not certain. There is no certainty in relying on a stock price to go up to profit. If you were certain, you would have mortgaged your house to ride the wave.
Those who emerged from 2020 unscathed invested for certainty. The peace of mind of knowing you can rely on a consistent, stable stream of income and long-term growth from a recession-resistant investment is invaluable.
- Are you going to keep investing like the middle class in 2021?
- Constantly attempting to time your buying and selling to make a profit?
- Or will your investing strategy change?
I would encourage you to invest in solid trends. Invest in those industries that will be here to stay. Don’t be reactive… be proactive in your investing.
In 2021, set goals that reflect where you want to be in one year, five years, 10 years – keeping in mind the trends and industries that are here for the long-haul.
My tips for 2021?
- Latch onto lasting trends and avoid fads.
- Invest in certainty and consistency.
- Invest in proven industries with viable long-term prospects.
- Invest for income.
- Invest for growth.
- Be proactive.
- Avoid speculation.
Michael Foley, president and CEO of Humabilt Capital, oversees the entitlement process, funding, and operations for Humabuilt Capital. Mr. Foley has been a full-time real estate investor since 1995 during which time he has developed hundreds of single-family homes, townhomes, condominiums, and apartments. Mr. Foley started his investment ventures in Long Beach, California, and has expanded to Apex and Durham North Carolina. Mr. Foley is a graduate of the University of California at San Diego.