The 2020 markets were great for those who got out of fiat and into strong appreciating assets. We've seen all major assets appreciating against the dollar; cryptocurrency, stocks, and precious metals in particular.
In retrospect, the coronavirus, the election, and the overall civil unrest placed fear in the heart of the average consumer while creating buy-in opportunities for those who were savvy and liquid.
With nations worldwide in a race to deflate fiat currency, you could have almost invested in anything in 2020 and made a decent return. Check out my post on how all major assets are appreciating against the dollar here @opinizeunltd/all-major-assets-appreciating-or-all-paper-fiat-depreciating.
Here is the 1 year performance for those assets that were highlighted:
1yr Performance > December 11, 2019 - Current
| Bitcoin | Ethereum | S&P 500(SPY) | Gold | Silver |
|---|---|---|---|---|
| $7197 | $145 | $314 | $1462 | $16.84 |
| $18391 | $565 | $366 | $1835 | $23.98 |
| +155% | +289% | +16% | +26% | +42% |
Now of course, any person (or entity) that invested during the market tumble in March experienced much greater gains. Based on my knowledge base my portfolio is way too crypto heavy right now.
December of last year I got out of most of my stock positions for crypto and I wish I would've held on to a few. This year alone I've missed out on huge pumps from Workhorse WKHS, Wheaton Precious Metals WPM, and Square SQ...all positions I regret getting out of 🤮. I also haven't added to any of my precious metal holdings (physical or paper) this year.
Based on those experiences and armed with a lot more knowledge, (thanks to LEO and gathering my own intel) I'm going into 2021 looking to build an ironclad hand with the intention of holding, swing trading, and accumulating for at least 5 years.
After stepping back and canceling out all the noise it has become pretty clear to me what assets I want to hold as the majority of my portfolio going forward.
My goal for 2021 is to start developing the allocation of my net worth as follows:
Cryptocurrency - 45% (15% BTC, 15% ETH, 10% altcoins)
I'm less risk-averse so my long-term goals are still pretty crypto heavy. Aside from that, with the digitization and tokenization of everything from art, identification, collectibles, to real estate, you'd be foolish not to have some Bitcoin and Ethereum in my opinion.
Equities - 30%
Yes, the stock market is manipulated, pumped by the fed, and overvalued. But guess what, it's going to keep appreciating against the toilet paper that's pumping it up. We're still due for another correction based on the inverted yield curve metric and some other factors but I expect appreciation overall. Outside of the SPY, I'm looking for 3-5 stocks from the tech sector to establish a position and hold on tight.
Precious Metals Exposure (hard & paper) - 15%
I know...gold and silver are boring, they're old, and they're not easy to transport. But one fundamental idea that was drilled into my head while studying estate planning was the concept of hard, tangible assets versus paper/digital assets. While crypto is here to stay, it is not a hard, tangible asset that holds value directly like gold or real estate and there will always be a sector of investors looking to hold a portion of their wealth in something physical that they can put their hands on.
Cash - 10%
Only for emergencies and the dips 🤑
You don't want to be holding a big bag of cash while everything is appreciating. INFLATION, INFLATION, INFLATION!
*Real Estate
I'm still looking to close my first creative real estate deal and in the grand scheme of things that is the vehicle I want to use to fuel my wealth and fund other investments. I didn't include it in the percentages because ideally, my real estate value will exceed all my other holdings combined in the future. Residential real estate is the last asset I'm worrying about tanking...and we've all heard the saying "they ain't making more land".
I also want to retire early so I can spend more time with my family so I'm looking for income-producing assets and real estate, crypto and dividend-paying stocks have that going in their favor also.
What assets are you looking to acquire going into 2021? What are you staying away from?