“The rich get richer” is a common refrain and for many rich elite investors, this is true.
It’s not that they’re taking advantage of others. They just know how to leverage their money to make more money. As a tumultuous 2020 comes to a close, there’s hope on the horizon as one or more COVID-19 vaccines are set to hit the public. With lockdowns and travel restrictions set to be lifted, the economy is set to open up in what is likely to be a tidal wave of activity.
The rich are getting ready to pounce in 2021. How do we know? Because they’ve been hoarding cash.
According to the Wall Street Journal and other sources, wealthy investors including Warren Buffett are sitting on nearly $5 trillion in cash. These investors aren’t retreating, they’re waiting. They’re waiting to take advantage of opportunities as the economy gets back up to speed.
The rich invest differently than everyone else:
- They don’t speculate in the Stock Market.
- They don’t try to guess stock movements ahead of the market and take advantage of timing spreads. To the rich, this is no better than gambling and the rich don’t speculate.
- The rich don’t invest for timing, they invest for demand – quantifiable demand. They go where demand will be high and/or supply will below.
As we emerge from 2020, we’ll all be operating in a new normal.
2020 was challenging for many industries (hospitality, entertainment, restaurant, travel, etc.). Some businesses will never recover and some will be transformed. No matter how things shake out, there will always be investment opportunities. Let’s not forget that even during the Great Depression, there were still businesses that thrived. People still needed shelter, food, fuel, etc.
The 2021 economy will likely be the first post-COVID-19 economy and you can be sure of one thing: That $5 trillion in cash the rich have been sitting on will be deployed to investment opportunities to take advantage of the demand.
The rich don’t have to be the only ones that profit in 2021.
If 2020 was a setup to 2021, how will you play it? Cautiously? Will you stay on the sidelines? Or will you pounce like the rich? 2021 could be an incredible opportunity for you but are you willing to take action?
What are my personal plans for 2021?
I’ll be chasing demand. I will be leading many investors seeking incredible investment opportunities in 2021 into markets and assets where income and growth will be driven by high demand and short supply.
I’m focused on real assets with value-add opportunities where I can leverage my skills, expertise, processes, and infrastructure to achieve outsized returns for myself and my partners. I’m 100% confident that opportunities will abound in 2021. I’m already deep into several key acquisitions for Q1 with many more on the radar.
2020 was rough. Many sectors of the economy were shut down or hobbled by the pandemic. Some businesses emerged stronger while others didn’t make it. 2021 will be different.
When events, venues, restaurants, and travel destinations open up with eased restrictions, how will the economy look then? What about the voids left by businesses and industries that went under? There will always be something to fill those voids and that’s where the rich will pounce. They will chase demand that fills those voids.
In the multifamily sector in which I am heavily invested; whether investing in assets with surging demand or stable demand, there are investment opportunities at every price level, asset condition, and investment strategy for investors to choose from. 2021 will not lack opportunities.
The key will be to be proactive and to not hide to take advantage of the multiple opportunities already available and that will present themselves. 2021 will make many investors wealthy.
Don’t be left out.