How Canadians Can Invest For The Long Term

When it comes to investing, 2021 has already been a year for the books. It's been quite "interesting" to say the least.

Not just for locals but for Canadians all across the globe.

With investing workshops popping up in Vancouver, Calgary, Toronto and more (Online for now due to the pandemic) , looks like a new way to diversify a person's income is on the horizon.

Even Canadian businesses are now creating an active 'investor' wing in their company to diversify more.

Although investing is not something new, it is definitely becoming more common than before.

In a world where a group of “Redditors” (Online forum for tech geeks) can band together and drive stock prices straight to the sky, a renewed interest in investing is hardly surprising.

GameStop, a video game company (The one that Redditors helped) made it quite possible for the average Joe to invest in something decent, and then walk away with some serious cash.

Although these markets are certainly not immune to the volatility of financial ups and downs (Especially during the pandemic), if you do take it seriously, including proper due diligence / research, and invest to reach a certain goal, it just may be a path to consider.

What often makes the difference between successfully investing today vs. successfully investing for years to come is a long-term approach.

Most investors see their money as “seeds”. They usually have a long term view of 3-5 years before expecting any kind of returns.

That said, there are many people who also invest for the short-term and get a tremendous amount of ROI (Professional card players for example). Plus there are other investing options that are right down the middle.

So the good news is, there is something for everyone out there. It wouldn't hurt to have extra savings on the side though before you dive in. Although that is entirely your choice.

As long as you start with the right approach, and have a strategy in place, even inexperienced investors can see great returns. Also, be willing to put the time and effort in. As it always good to learn about what you want to invest in.

In addition, it wouldn't hurt to beef up your technical game as well. After all, the more you know about a subject, the better off you are going to be.

Like pairing high risk and low risk investments together.

Or considering ESG factors before releasing your investment.

Let's take a deeper look:

Pairing high-risk and low-risk investments

Investing in both a high-risk asset and a low-risk asset can be a great way to minimize losses.

Many so-called beginner to intermediate investors have ran with this specific strategy for years.

The whole idea is to invest in assets that are high, medium and low in price and value so it diversifies your portfolio.

Since nobody knows which investment will actually show good returns, it's nice to have a 'mix' bag and then adjust accordingly.

Some investors are quite keen on this and they avoid putting all their eggs in one basket.

At least until they are sure of it.

ESG factors

Environmental, social, and corporate governance are factors you should consider before investing into anything.

As these factors can make or break an investment. It should be all part of your due diligence (Research), etc.

Also, it's always a good idea to see how things are

What's Trending . . .

2020 and 2021 have seen plenty of global fluctuations. For many investors, that means adjusting their long-term strategy accordingly.

Here are some examples of markets and industries that experts recommend for 2021:

Clean energy
2021 is bringing a renewed focus on clean energy and sustainable living, both industrially and politically.

Investing in clean-tech stocks and funds is a good strategy to consider this year. It's just what is going to be happening
on a global scale.

Most countries and people in general want to get cleaner energy as soon as possible. So this is a space to definitely watch out for.

Fintech

This refers to the mix of Finance with Technology (FinTech). An industry that has been growing consistently for the past 5 years or so and shows no sign of slowing down.

After all, as long as there's money circulating in our societies, we would need tools to help us manage finances and do them in the most up to date fashion possible.

So if you have interest in tech and improving the financial side of your life, FinTech may be just up your alley.

Growth themes
Remote work technologies and cybersecurity are two areas of growth throughout 2020 and 2021. Honing in on these can be a great way to maximize returns.

Remote work today is just part of our lifestyle now and cybersecurity is probably one of the most in-demand industries around.

With literally everything going online, cybersecurity and other related fields are expected to grow for a long time.

Although these are just a few ideas, keep in mind that investing isn’t for the faint of heart.

Especially during significant upheavals and uncertain times.

Placing your trust and your hard earned cash in any investment vehicle can trigger a wide range of emotions. It’s only natural to feel stressed (and tempted to liquidate aka sell for cash) when market values are dipping.

Similarly, as market values skyrocket, many investors get caught up in excitement and jump on things that are trending.

Without understanding what it’s’ all about in the first place.

After all, no one wants to hear about the huge returns that other investors made vs yourself.

It’s this fear of missing out (FOMO) that often drives investors to make hasty, short-sighted decisions. While some of those decisions may work well in the short-term, quick reactions are not a winning strategy for long-term gains.

To be truly successful, long-term investors should stay focused on their goals and resist making decisions based on market swings or the latest stock trend.

Although this advice may work for this gentleman and perhaps others, it’s not for everyone.

Some investors are just so in-tuned with their intuition that they can pull some amazing financial moves in a matter of days.

Whether you are in for the long term or short, there are definitely many things out there for Canadians to invest in. Just make sure you're accountant is aware of them.

At the end of the day, it all depends on what works for you.

DISCLAIMER: This article is strictly for informative purposes only. We do not give any investment advice or recommend any specific markets, companies, products or services as investment vehicles. Please talk to your financial advisor for any investment related help.