It’s a new year with new hopes and expectations. The past year was one of twists and turns. To say it was a roller coaster ride is not far from reality. It wreaked havoc on many portfolios and brought untold riches to many. So I took a look at my portfolio and decided to write on three lessons I learned from my investment journey for the year.
1.Tech is not going anywhere
Although tech took a beating at the beginning of this year, the story for 2021 was different. If you have not realized it yet, tech is the future of investing and will always remain so. The year 2021 saw huge tech selloffs. To many stakeholders, 2021 reminded them of the tech bubble of 2000. Big tech companies rose admirably, and despite the slowdown at the beginning of this year, I believe the rise will resume from where it left off in 2021. In 2021, Apple (NASDAQ: AAPL), Google (NASDAQ: GOOGL), and Meta (NASDAQ: FB) all hit new highs. I increased my holding in meta (NASDAQ: FB) after it decided to bet on the metaverse through a name change.
There are concerns the bubble will burst, but the tech industry is best placed to ride out any economic downturn. Have you noticed how important tech is for your daily life? We use it for everything from phones to entertainment, including retail and healthcare. Tech is ingrained in the modern world, and it is here to stay.
I am already preparing for the promise of a virtual world where I can play, work, and socialize in the metaverse. Metaverse stocks, I believe, will be hot this year.
2. A diversified portfolio is essential
Several stocks have seen bumps and jump this year. Stay-at-home stocks soared when mandatory lockdowns were imposed at the beginning of the year and then dropped when the world opened up again. After the U.S opened its borders in November, travel stocks saw a rally until the Omicron variant of the coronavirus struck and the rally cooled. Nothing was guaranteed in 2021. Equities made new all-time highs in 2021, while investments like gold and debt stocks were held in a tight range. REIT stocks saw a rebound at the beginning of the year and continued to hold their forte until the end.
The only way to navigate the market volatility was to have a diversified stock portfolio. A diversified portfolio spreads the risk profile, thereby leveraging profits.
3. Elon Always Wins
Elon Musk, the CEO of Tesla, showed us that he is nowhere near failing. In 2021, he led Tesla (NASDAQ: TSLA) to the trillion dollars club, breaking a record that would last for ages. Sometimes, Elon Musk was at his best on Twitter, his platform of choice, trying to derail things, but his supporters seem unbothered and devoted to him. As a result, his stock will continue to grow strong.
Elon’s personality could not be the best, but Tesla stock is more than a meme stock. Its enduring value comes from the wide-ranging institutional support it enjoys. ARK Invest CEO Cathie Wood revealed that the stock was its most held position for 2021. This year, all eyes will be on Elon on whether he will finally tweet the last straw and break the camel’s back.
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