Global Investing Guide 2021: For Women Investors
The financial independence of women is a growing trend. Women have proved to be logical and prudent with money management, be it heading billion-dollar businesses or managing personal finance. Yet, only 33% of women make their own investment decisions globally, as opposed to 64% of men. For this reason, ‘the charging bull’ outside of Wall Street is sometimes perceived as an aggressive and chauvinistic nature of the male-dominated industry.
Thankfully, that’s changing as more and more women are stepping in to not only make their own investment decisions but also play the role of financial advisors and investment experts around the world.
So, here’s a breakdown of global investing trends for women:
1) Post-Pandemic Market
COVID-19 nearly brought global markets to their knees resulting in countries losing a significant chunk of their economies. With that being the case, some sectors like pharma, healthcare, e-commerce, and online entertainment saw a substantial rise. Women should thoroughly research and gather all possible facts about such companies and keep abreast with all the activities and movements of these companies. An informed and prudent investment here could yield multifold returns if monitored well.
2) European Markets
An often-neglected market for global investing, the EU offers many opportunities for investing in a now growing-again market. The EU was the worst hit among all markets in the pandemic and is slowly opening up and has promise, if invested in the right sector at the right time. Chief European Equity Strategist Graham Secker is optimistic for 2022, backed with sound fundamentals and policy; he pegs the EU market to “comeback” with average share-earning growth at 30%.
3) Ethical Investing
With global political rhetoric leaning towards discussing green issues and renewable energy resources, investing in companies involved in RE and related portfolios wouldn’t be a bad idea.
Post-pandemic investing has seen a trend of people not opting for traditional investing opportunities but instead putting their money in green ventures, which, by most experts’ opinions, is the future of investing. According to a research by Morningstar, the inflow of funds into the ESG (Environmental and Social Governance) grew to $71.1 billion last year and is steadily on the rise. With oil and airline stocks on the decline, many people who invested in RE and green ventures were vindicated after traditional investors and experts expressed surprise and shock during these investments.
Comprehensive research and monitoring of future movements of such companies and investment at the right time can prove to be very fruitful in the future.
4) Tech Companies
Remember those lengthy Zoom call meetings last year during the lockdown? Well, trends suggest they’re here to stay. According to a survey by the British Council for Offices, those who plan to spend less than 5 days a week in the office are senior executives (62%), entry-level workers (58%), and office staff (46%). Hi-tech light-footed companies are set to take the market by storm, already reaping the benefits of the Work from Home strategy employed by many companies.
Exposure to a diversified tech pool of up and rising startups can complement well with long-term investment portfolios and can offer attractive returns in a reasonably quick time.
5) China: The behemoth after the Pandemic
Although China reported the first-ever case of COViD-19 in the world, their planning and strategies to tackle the pandemic with sound disease control management saw them recover economically from the standstill quicker than other developed nations. The Shanghai Stock Exchange composite index saw a rise of nearly 25% in the past 12 months.
FDI (Foreign Direct Investment) into China grew 6.4% year-on-year to the tune of $115b with global giants like ExxonMobil, BMW, and Allianz investing in Chinese markets and President Biden having a neutral economic approach than his predecessor. China looks all set to be an investor haven despite Chinese-owned stocks in American markets falling about 20% in the past month due to the crackdown on education and technology sectors by the Chinese government.
6) Cryptocurrency
A much-talked-about investment option among young investors, cryptocurrencies have had a meteoric rise in the recent past, with Bitcoin delivering returns of 525% in the past year. One of the few drawbacks of this investment opportunity is the sheer high value of the coin. The saying, “higher the rise, deeper the fall,” fits right into the trading ethics of cryptocurrencies.
Another drawback that drives seasoned investors away from cryptocurrencies is the lack of a regulatory authority when things may go haywire. This, coupled with its volatility, makes investing in cryptocurrency a tricky affair but, if done right, can fetch the investor a boatload of cash in quick time.
7) Precious Metals
Precious metals like gold and silver are stable investment routes compared to the stock market in these times. It is perceived as a safe investment, resilient to inflation. The post-lockdown period has seen a nearly five-fold increase in young investors opting for gold and silver over traditional stock trading.
Although precious metals are a safe and less worrying investment opportunity, they are not a reliable source of growth. Investors wanting to invest in metals should also consider ancillary options like investing in gold bullion and companies that mine gold.
All in all, research, prudence, and investing based on facts more than trends and emotions will fetch the desired yield for investors. One should always look to diversify their portfolios in this topsy turvy market to safeguard their wealth from the peaks and troughs of an uncertain market trying to get back on its feet after surviving a crippling pandemic.
As an investor, especially as a woman investor, one should be prepared to be patient and give an adequate amount of time to research and analyze options before investing. Also, one should regularly monitor the health of the investment to check losses and book profits. Investors must remember that one can only predict on the basis of precedent, but no one can accurately determine the share market’s actual outcome. An investor should always keep these things in mind and hope for the best.
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