Nicholas Kyriacopoulos: How to Invest Wisely in 2021

2020 was not a year that most people want to relive. One aspect of the year that surprised many was the performance of the investment market. In many places around the world, it did quite well. That has left some wondering what will happen with the market in 2021. 

Entrepreneurs like Nicholas Kyriacopoulos understand the role of investing in carrying dreams forward. Given the fact that the market can change direction at any time, knowing what to do can sometimes seem difficult. In fact, there are some basics that have helped in the past and will continue to help investors in the future. Here are some basics about investing wisely in 2021 that are likely to serve you well. 

Employ the KISS Principle 

KISS is an old axiom that means “keep it simple stupid.” As this relates to your investment portfolio, it essentially means employ methods that make the management as well as the growth easy to do. This can mean different things to different people.

As Nicholas Kyriacopoulos has explained in the past, consider how much time you’re willing to devote to researching investment opportunities and weigh the choices based on the degree of volatility and the potential returns. As that relates to performance, do you feel the investment of your time and your money is worth it? Do you understand the projected movement of that investment and see the reasons why that movement is projected? If so, your choice is simple: allocate funds to invest in that opportunity, knowing that the amount of time you will need to give it in the future will be minimal. 

Diversification is Still a Good Idea

There has never been a time when diversification as a bad thing for any investment portfolio. During 2021, that will still hold true. You want to make sure that your investments are varied enough so that some of them are performing well while others are in temporary slump or possibly generating no more than a minimum amount of return. 

How do you diversify a portfolio? Many entrepreneurs like Nicholas Kyriacopoulos recommend holding a variety of asset types. For example, have bonds as well as stocks included. Consider real estate as part of the portfolio. It never hurts to have futures or hedge funds as part of the overall plan. Even with stocks, make sure you have some associated with different industries. 

Keep Rebalancing in Mind

Within the scope of diversification, be open to the concept of rebalancing. This simply means that as market shifts are predicted, consider some minor tweaking in the range of assets that you hold. Your goal is to shift part of your investment away from assets that are likely to perform poorly and temporarily replace them with assets that are showing signs of being about to increase significantly. 

If you need an example of rebalancing, Nicholas Kyriacopoulos can provide an easy one from the latter part of 2020. Oil stock did not do well during the first three quarters of the year. However, there were some signs that this would change, at least for a time. This led some investors to sell assets over the summer and purchase oil stocks. Those investors realized excellent returns when the stocks surged in November 2020. Once the surge showed signs of subsiding, some chose to sell while the prices were still higher and move on to something they could by low, hold, and ultimately sell at a higher price. 

Asset Allocation Should Involve Considering Where You Are Right Now

Here’s another tip that someone like Nicholas Kyriacopoulos would pass on to anyone interested in building a stock portfolio: consider where you are right now as well as where you want to be at some future point. Why is right now so important? In many ways, it has to do with the amount of risk you can assume and how well you can bounce back if an investment doesn’t live up to your expectations. 

For example, consider your present age. It’s generally easier to absorb and eventually recover from a loss in the market if you’re younger and have decades left to work and rebuild. If that happens to be you, considering opportunities with higher volatility makes sense. If you’re nearing retirement and depending on holdings to provide part of your support, focusing more attention on steady investments that come with less volatility (and lower potential return) may be the way to go.  

But Do Consider Your Long-Term Goals 

As Nicholas Kyriacopoulos points out, considering the here and now in no way minimizes the need to think about long-term goals. Where do you want to be in five, ten, or twenty years? How do you envision yourself living, being a part of a community, and pursuing the things that matter the most? What can be done now and along the way to ensure your investment activity moves you in the right direction? Setting goals and having plans is just as important in 2021 as it has ever been. 

Your Instincts Still Matter

Instinct alone is not enough to make investment decisions, but don’t discount it. If your instincts seem to have some backing from historical data, current market movements, and other sources, it’s worth the gamble. As Nicholas Kyriacopoulos, investing does involve risk and it sometimes means going with what you feel deep in your gut.  

The key is balance. As exemplified by the investment history of Nicholas Kyriacopoulos., that instinct may be borne of paying attention to minor details others are overlooking. They leap out at you when others miss them. If the feeling is strong enough, take the risk. 

There’s more that you can learn from Nicholas Kyriacopoulos and others about investing during 2021. Put these ideas to good use and be open to more. Things could look quite good by the end of the year.