There might not be any way to plan for a global pandemic and its resulting financial panic, but that doesn’t mean it doesn’t pay off big time to plan ahead, even in times like these.
And going forward without a plan means risking letting huge opportunities to score massive profits pass you by.
For example, anyone who didn’t have an investment plan in place this year likely ended up freaking out along with millions of other investors, lurching from crisis to crisis and making a series of bad financial decisions.
Just as bad, they even ran the risk of sitting on the sidelines confused as the market came roaring back.
Consider that just investing in the S&P 500 when it rebounded last March 23 was enough to make 65% returns in nine months.
And that’s why today, in the first of two parts to set you up for a profitable 2021, I‘m going to show you how to plan ahead, to give yourself the best possible chance of avoiding these pitfalls.
If you follow my lead here you can crush the market’s historic returns with breakout tech leaders.
The market has led us on a wild ride this year. It dropped over 35% in February and March, and in only a matter of months, some indices were already hitting all-time highs again. Just look at the Nasdaq Composite, which is up 40% this year, even with the drop.
But the most interesting moves in the market this year have been from private companies entering the public markets.
With a medical program launching in 2008, the people of Michigan had a jump start in learning about the health benefits of cannabis while growers had time to perfect their craft.
By the time recreational sales started on December 1, 2019, you had an educated consumer base who could buy some of the best cannabis in the country. And Michigan smashed it out of the park, with almost $440 million recreational sales in its first year – more than both Nevada ($425 million) and Massachusetts ($420 million).
I visited Michigan in November because I wanted to see this boom for myself, which led me to one startup in particular that is accounting for 12% of all the sales in this state.
I’m not sure I could have survived this year without shopping online, and I have a feeling many of you are thinking the same thing. In fact, e-commerce is growing faster than ever before, jumping to 16.1% of total retail sales in Q2 2020 from 10.8% last year in the United States.
That equates to billions of dollars spent online from groceries to electronics and even cars. That’s why we have seen stocks like Shopify Inc. (NYSE: SHOP), Amazon.com Inc. (NASDAQ: AMZN), and Carvana Co. (NYSE: CVNA) skyrocket over 100% this year with everyone at home.
The best part about this is that it is not a trend that is going away anytime soon. According to a survey done by the United Nations Conference on Trade and Development, the Covid-19 pandemic has forever changed online shopping behaviors. Following the pandemic, more than half of the survey’s respondents will continue to shop online more frequently.
The pandemic has accelerated the shift towards a more digital world, and we have seen that everywhere. We talked about it with MercadoLibre Inc. (NASDAQ: MELI) in Latin America and with Sea Ltd. (NYSE: SE) in Southeast Asia.
Now I want to talk to you about an entirely different market with a recent IPO that is taking e-commerce head-on in Russia.
We have all heard of Amazon and Alibaba, but chances are you have not yet heard about Ozon Holdings PLC (NASDAQ: OZON), one of the top e-commerce companies in Russia, with a bright future ahead of it. Interestingly enough, just like Amazon, it was founded as an online bookstore in 1998.
They quickly expanded to sell clothing, music, movies, electronics, fresh food, and now offer more than 9 million products across 24 product categories.
Now you may be thinking, isn’t there a lot of risk to investing in a foreign country? Well, yes there is always some risk in investing in foreign companies. The same could be said for investing in China, where companies like Alibaba Group Holding Ltd. (NYSE: BABA), JD.com Inc. (NASDAQ: JD), and Nio Ltd. (NYSE: NIO) have all brought triple-digit returns.
As holiday shopping comes to a close, this year felt a bit different. There was no camping out overnight in front of stores to get that doorbuster TV. Instead, everyone was in front of their computer or cell phones to buy everything they needed this year.
Cyber Monday was projected to be the largest online shopping day in U.S. history and it not only delivered, it crushed last year’s spending, increasing 15.1%. That equates to $10.8 billion spent in a single day according to Adobe’s shopping data, which pulls its data from one trillion visits to U.S. retail sites.