Short term investment for 2021

Looking for opinions on short term growth for 2021. I am looking to buy now and hold till end of year.
What stocks/ETFs do you recommend for decent growth with relatively low risk? Not looking to take huge risks as well.

I am thinking airlines and renewables would probably be the best bet.

INRG is a good ETF for both short and long term.

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You mean low volatility

Some in this list are dividend aristrocrats

Im curious if just holding for a year what are you doing at end of year? If you need the money in a years time just find a savings account, no shares base investment will guarantee you wont lose money over a year.

With that being said if I had X money and had to buy shares and then take it out in a years time my choice would be:

GSK - I think downside risk of 3-5% but its pays a almost 6% dividend at current prices, so I would be confident at least level if not up with the share appreciating a bit over the year too.

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Unless you want to buy into a fund with AA debt that pays 1% per year and it might rise by another 1-2% during that year.

This is the safest option, or a cash fund again with gains of 1%.

If not your good old bank account is bleeding as per inflation and the savings accounts don’t have the same amount to beat inflation… Not in the UK at least

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Why not GSK is a UK dividend aristrocrats? Is it?

On the shoe term it is still on the downtrend but looking at the 5 year one it seems the support line hold.

Looking at an even longer term it seems it is trading into a upward Chanel, but hey are you going to wait 3-5 years? !

Sorry I am not predicting the market just making the point that the market can go up or down, hence if the support level would have not hold then it would have gone even more down.

Screenshot_20210105-143001|413x499

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Each have their own analysis and decisions, if I had to put money into the markets and HAD to take it out 1 year from now, I would fancy GSK return at 3-8% + almost 6% yield, so 9%-14% next Dec/Jan. Only time will tell :smiley:

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Not predicting the market, just making an observation.

Yeah absolutely, I agree that you would want to hold for more than a year (i plan too) just original poster had that questions. I definitely wouldn’t put money in I need in a year to a stock of any kind, yes there is inflation but savings are there as safety net.

@Hbomb @biswas @chantal

  1. GSK pays 5.8% a year
    The second of my cheap FTSE 100 shares for generating passive income is pharmaceutical giant GlaxoSmithKline (LSE: GSK). My family has continuously owned GSK shares since 1989. For a long time, GSK has been our largest individual shareholding. We hang tightly onto it, because GSK is an absolute powerhouse for paying out dividends. One GSK share has paid a steady 80p yearly dividend for each of the past five years. This costs the group around £4bn a year. This is the FTSE 100’s fifth-largest dividend by size, which GSK easily covers from its massive cash flows.

The group’s market value at the current share price of 1,377.6p is a hefty £67.3bn, making it a FTSE 100 heavyweight. At this price, its shares are cheap in historical terms. They trade on a price-to-earnings ratio of 10.6 and an earnings yield of 9.4%. The dividend yield of 5.8% is covered around 1.6 times by earnings, so should be safe and solid for a market-beating income to retire on.

haha yeah so just dont be like that guy and buy high.

Thanks for the suggestions all.

@Hbomb
I need the money at the end of year but like I said, willing to take some risks. I am not putting all of my money into stocks.
Of course, the bank is the safest but with inflation, end up losing at the current rates. Looking for stocks/ETFs most likely to grow in 2021 (during early covid recovery phase?).

I already have renewable energy stocks/ETFs in mind but I was looking at other suggestions (in other industries).

I see, well I am bullish on China, so if you already have some western ETFs, maybe try something like FCSS the fidelity china ETF. China over the next year will probably outperform any western countries as we are still lockdown and not full open like they are.

@biswas if u need the money in the next year then stocks are volatile, mutual funds as in bonds would be less volatile.

stocks are also riskier than bonds as the bond holder will always get paid first before the shareholders in the event of liquidation.

Pretty sure everyone knows this already :wink:

@Zrtz @biswas

Bond rates are lower over time than the general return of the stock market. … Bonds will always be less volatile on average than stocks because more is known and certain about their income flow. More unknowns surround the performance of stocks , which increases their risk factor and their volatility .31 May 2020

[image]

www.investopedia.com › … › Stocks

Why Stocks Generally Outperform Bonds - Investopedia

@Tedk99 i agree stocks outperform bonds but just pointing out that when a company goes bankrupt, liquidation process stipulates that the bond holder get paid first before the shareholder.

I cant remember the exact order - Liquidator, convertibles notes, employees, lenders bond holders etc all gets feed of the chicken drumstick before shareholders assuming there’s any meat still left.

In most cases i’ts just bones left :rofl: :joy:

@Zrtz I know I mean look at wirecard such a massive scam that it was…

The thing is if u need the money in 1 year and u have 3 months left and u have - 30% in the portofolio what are you going to do?

Or if 6 months from now is +25% and then when it comes to 1 month before the year the market tanks to - 16% what do you do then?

Average out is a good strategy for long term investors.
What’s yours?

I have an airlines pie which I’m putting 2k euro into and plan to cash out in December 2021. If it’s up, it’s up, if it’s not it’s not. The level of due diligence I did was thinking for 2 seconds and concluding ‘flights and cruises will be back this year, no harm putting some money on the biggest players in hopes of quick money’. If it pays for some fun next Christmas, I’m happy with that!

Yes I am into Airbus Boeing Royal Carabian because of the same reason and Easyjet, avoided Carnival in UK I don’t know why.

But you can leave some bullets for fire power in case of a correction, if u buy all in now and the market dips further then u can’t average your price.

If the market keeps on rising, then you are a winner.

Just have a look below

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