Let’s dial back a little and talk about how investing works in the first place. I personally don’t like the term investing because of how lightly it’s been used for everything so you can think of the word buying instead… Investing is simply buying something with the intent to grow your net worth now or in the future.
The first thing you need to know is there are multiple asset classes (categories) to invest in: Business, Stocks, Derivatives, Bonds/Bank Deposits, Real Estate, Collectables, Precious Metals, Cash, Cryptocurrencies & any physical assets that have liquidity (cars, furniture, electronics, accessories, clothing etc.)
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Based on my investing predictions, trends & winds here is a very short summary of my favorite stock for 2021. I’ll write a more detailed article if there’s interest.
ArcelorMittal (MT:AMS, MT:NYSE)
One of the biggest steel producers worldwide. They have been beaten down by Covid and had to stop operations in Italy where the virus hit hard, their logistics has been hit as well causing the revenue loss last quarter. So now they are focusing on cash flows for 2021 to strengthen their balance sheet so their goal is to keep capex low and steady.
What I like most about this company…
Few macro trends to remember when investing in 2021. Listed in short for me to use as reference points…
Hard recession in USA and recession in Europe.
Even before the virus all businesses and households were ATH on debt, ATH P/E ratios, REPO market ATH, Liquidity problems -> Insolvency problems -> zombie companies, mortgage delinquency rising, garbage bonds, rising REAL unemployment rates, etc. Covid should be the final blow for main street.
USD REAL Inflation, money printing, followed by ECB & other central banks to do the same.
Interest rates =< 0 should mean that money printing is here to stay in 2021. The FED and ECB buying out the biggest companies though doesn’t do much to fix the economy.
Monetary policy seems to…
Luck Is Skill
Amateur investor, doing my own research and strategy. Investment horizon is 1-2years for each asset. Looking for low risk high reward plays.
