The dawn of a new decade heralds new and exciting opportunities for investors. In this blog, we predict 4 significant changes to the landscape that will make for successful investing in the new "Roaring 2020s".
1. Millennials are the new economic powerhouse Millennials are a force to be reckoned with. A few short years ago they were fresh-faced kids, thought to be lazy and over-indulged. Now, as they leave their 20s and enter their 30s, the stereotypes are unravelling. Over the past decade, millennials have worked longer hours than any other generation before, with slow and limited wage growth. This is all set to change however, with their hard work and dedication about to pay off.
Nearly 50% of millennials participate in the freelance economy — an economy that is showing no signs of slowing down, thus promising an upward career trajectory for these young adults. Furthermore, the group is anticipated to inherit over $68 trillion from their baby boomer parents in one of the greatest wealth transfers the world has ever seen.
The 2020s will see millennials become the new economic powerhouse. Already their consumerism has been a major positive economic contributor, lending to the success of companies like Airbnb, Uber, Amazon, and Spotify. Ever the disrupters, millennials are poised to shape new economies and industries as they step into the decade with the same "can-do-attitude" they've had all this while. 2. Real estate outlook is good The 2019 housing market has experienced low rates, high demand and limited supply — particularly on the lower-priced end of the market. Economists are predicting continued low prices in the new decade, giving property investors more bang for their buck. Millennials have also been on a homebuying streak over the last few years. With the tech-savvy millennials now in the market, the real estate industry is expected to go through complete digitisation.
Mortgage and real estate spheres have already begun moving away from manual, paper-laden processes to more innovative services, like digital mortgage applications and e-signing. We'll probably see these solutions start teaming up in the new year, so rather than competing, companies will combine technologies across the board. 3. Brexit comes with economic opportunities (yes, really) Amid the chaos and confusion, businesses are finding real opportunities in the Brexit aftermath. Depending on the deal made, Brexit could open up new markets beyond the EU and deliver a welcome boost to UK exporters. The devalued pound has resulted in cheaper UK products and increased export sales.
Of course, it is a matter of waiting to see how Brexit unravels. Still, one thing is sure in 2020 — there is an opportunity in every challenge. 4. The best time to start investing is yesterday At the end of the day, you'll never be younger than you are right now. The best time to invest is when you have the money and remember the tenants of investing success when doing so:
Save early and save often
Diversify your investments
Keep your investing costs and transaction costs dirt-low
Be mindful of tax considerations
Money can make more money if you let it
This material is not intended to be relied upon as a forecast, research or investment advice, and is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy. The opinions expressed are as of the date indicated and may change as subsequent conditions vary. The information and opinions contained in this post are derived from proprietary and nonproprietary sources and are not necessarily all-inclusive and are not guaranteed as to accuracy. As such, no warranty of accuracy or reliability is given and no responsibility arising in any other way for errors and omissions (including responsibility to any person by reason of negligence) is accepted by Chamber Pension Plan, its officers, employees or agents. This post may contain “forward-looking” information that is not purely historical in nature. Such information may include, among other things, projections and forecasts. There is no guarantee that any of these views will come to pass. Reliance upon information in this post is at the sole discretion of the reader.
The strategies discussed are strictly for illustrative and educational purposes and are not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy. There is no guarantee that any strategies discussed will be effective. The information presented does not take into consideration commissions, tax implications, or other transactions costs, which may significantly affect the economic consequences of a given strategy or investment decision.
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