Last week was probably the best week of the year. The stock market crashed and experienced
a correction, as many people expected. Like many of you, I was busy buying stocks that
I was waiting to buy for some time already. Since the beginning of the year, I did not
buy much except my favorite ETF since I was expecting a correction. In the previous video,
I have already explained why I believe the stock market will keep rising this year,
so in this video, I want to share with you what are the best investments for this year. But
before we do that, as much as I put effort into these videos, at the end of the, I am
not a financial adviser, this is not financial advice, and everything that's said in this video
is for educational purposes. In order to make the best financial decision that suits your own needs,
you must conduct your own research and seek the advice of a licensed financial advisor.
So do not do what I say in this video.
QQQ
The first investment that I believe is going to do great this year and in the following few years
is QQQ ETF. This is not your typical S&P500 ETF but slightly different. If there is something we
have learned from the past year, the tech will grow much faster. The amount of money that's
now poured into the new tech is unbelievable. And as we are moving into this digital world
of 5G, with self-driving cars and artificial intelligence, the tech is undoubtedly going to
have a much bigger impact on our lives. Of course, the typical S&P500 ETF also invests in tech,
but QQQ is almost just about tech because it invests in the top 100 largest international
and domestic companies listed on the Nasdaq stock exchange. Unlike other exchanges, The Nasdaq is
known for technology and innovation and is home to the internet, biotechnology, and other companies
at the cutting edge. As such, stocks listed on the Nasdaq are considered growth-oriented and more
volatile. Of course, that presents a higher risk; however, that also presents a bigger opportunity,
and since tech is clearly going to play a much larger role in our lives in the coming years,
the ETF is expected to grow significantly higher than other ETF. While SP500 grew by 18 percent
last year, QQQ grew by 50 percent. That's a huge difference. That doesn't mean that it's going to
continue rising, but if you believe that tech is going to get even bigger where we are going
to have smart cars, homes, cities and everything connected through 5g in the next decade or so,
then this is the ETF to stick to. It includes within itself all the tech companies you can
think about, from Tesla to Nvidia to Intel. If one of them comes up with a revolutionary product
or service, you will definitely benefit from it as long as you are an investor in this ETF.
2. Quantumscape Corp
The second stock that I believe that
huge potential is Quantumscape Corp, but it's very risky, so please do not invest in this company.
If there is one technology that is certainly going to play one of the biggest roles in the world is
undoubtedly batteries. Batteries are already huge, but in the next two decades, the world is going to
shift to a battery-based society, and that's not because we want to do that, but rather we have
no other choice. Climate change has left little choice for us. Shifting to renewable energy is one
thing but storing that energy is a whole different story. Think about it, less than 2 percent of cars
that are produced annually electric, and we already have a shortage of batteries.
How many batteries do you think we need to be able to make the other 98 percent of
cars electric. Even if starting from next year every car that will be produced will
be electric. We need like 15 to 20 years to replace all existing engine cars with electric.
Tesla is, of course, at the head of this industry, but Tesla uses lithium-ion batteries, which are
great but preset fundamental problems. They are expensive and take a long time to change, but
Tesla solved that problem with a charging station in your garage so that you can change your Tesla
overnight while you are sleeping. That's a great solution; however, if we want to go all-electric,
we have to build more effective batteries, and that's where Quantumscape comes into the picture.
Traditional lithium-ion batteries use a liquid electrolyte. The lithium dissolves in that liquid,
drifts through the liquid, and gets the anode and vice versa. But Quantumcape has replaced that
liquid material with a solid material that will make it possible to use a lithium metal anode.
That's going to make it safer and double the energy density and also make it faster to charge.
In other words, the same battery will provide you with a double range.
Another disclaimer, I am not an engineer, so if I got something wrong there, please correct me.
But the technology seems very promising. VW has already invested over 300 million dollars into
this company and recently tested the technology, and it looks very promising. As the number of
electric cars is increasing, this company will be the major player in this industry.
3. Real estate
You know what is the most important
thing when buying a house. Your mortgage rate, even a slight difference, is going to be huge
over 30 years. Getting a 0.5 lower rate will save you a fortune. Last year, since the fed decreased
the interest rates, getting a fixed mortgage was probably one of the best decisions you could make.
But, it was risky because the market could be overvalued now. An overvalued market means a
correction could be on the horizon. Besides, when everyone is buying, it's difficult to
find a good deal, nonetheless, possible. Mortgage rates went as low as 2.5 percent last
year. In comparison, mortgager rates were 4.9 percent back at the end of 2018. Even in 2019,
even before the pandemic, they were floating at around 3.5 percent. So getting a mortgage at 2.8
or 2.9 or even 3 percent is actually a good deal, especially if you spend some time finding a good
deal in the market.
Since buying a house is probably the biggest single purchase in most people's lives, getting
a lower rate is probably the best investments one can make it. I am almost certain that in the next
few years, the rates will just keep rising.
4. Any big stock
If we are talking strictly about 2021, then I think that any investment in any of the big
tech is going to have a really good return this year. It seems like everyone already agrees that
inflation is just going to keep rising, so keeping cash is going to hurt. But holding
stock in any of the largest tech companies is immune against inflation because no matter how
fast the inflation rate is, these stocks are going to rise even faster because we're going
to have a lot of investors who have to keep their cash somewhere. And one of the places
they're going to keep their money is the big tech. I've made a video recently talking about
why the stock market could crash because it is at least slightly overvalued but by a crash,
I don't mean anything like what happened in 2020, but it could be in a slightly bigger correction
compare to what we have seen in recent weeks. If you haven't invested during the correction,
then you probably missed a great opportunity because a lot of stocks, especially the big tech,
were down by 10% give-and-take. I personally invested in many companies that I have already
invested in before and invested in a few more that I have shared with my patrons on my Patreon page.
5. VTI
I have already suggested multiple SP500 efts in previous videos,
but I would note that they aren't the only options. There is a variety of ETS,
and one of the most popular ones that I personally invest in is VTI. It doesn't
just invests in the sp500 but in the entire economy of the United States, starting from
small caps to mind caps to largest companies in the market. So it just moves with the market.
It doesn't grow like falcon nine, but at the same, it's a safe bet. It's not just a good investment
for this year but pretty for any other year. It has a very low expense ratio which makes it
a perfect option for long-term investments. Last year it grew as much as the s&p500 did,
sometimes it's higher sometimes it lower. I personally invest in it every month just to
keep my portfolio a bit diversified. And now it's time to get at least two
free stocks from we bull if you use the link in the description.
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