The year 2020 will end soon and we will never be replaced by 2021. Unfortunately, the Covid-19 pandemic has not been resolved optimally and raises fears of a recession. Many investors in the capital market choose to wait and see in their investment transactions. Furthermore, beginners tend to learn more in this uncertain market, and they often visit alphabetastock.com to learn more about stock investment.
Apart from that, many investors have shifted their investment to safer types of investment. Amid uncertain conditions, how to prepare your portfolio in 2021?
Investors need to have an optimistic attitude in response to national and world economic conditions in 2021. This is because no one expects economic conditions to worsen. Optimism is supported by high hopes for economic recovery and improvement. People, like investors, will always hope for the better so that they humanly try to get out of economic difficulties.
This diversification is carried out to minimize investment risks during the Covid-19 pandemic in 2020. Diversification should continue in 2021 because in principle this diversification is a pillar in the formation of a healthy investment portfolio. When one does not bring money, there are other types of investment as a balance so that losses can be minimized.
Implement the DCA Strategy
Dollar-Cost Averaging (DCA) in investment is understood as a strategy of regular installments every month in the same amount. As with conventional savings, the investment is paid in installments according to routine capacity every month. This DCA strategy can prevent investors from over-investing at the wrong time at high prices. As is commonly known, if you are not careful, investors often get stuck at high prices when buying because of ignorance and more because of emotional decisions. Potential Stock Sector Along with the economic recovery process which is predicted to grow +4.37 percent, cyclical sectors such as banking, automotive, basic industries, and commodities can become investment options in 2021.