Investing, but faced with an immense “range” of options, what is the best choice? Stocks, gold, or the cryptocurrency market. In practice, the stock exchange represents a universe of variable income, and may present more risks than other types of investments. However, even though many analysts see it as an unprofitable investment, it is still one of the most popular financial products. When we had double-digit interest rates, it was common for the CDI to beat the Bovespa index.
Stocks, Fiis, Gold, or Cryptocurrencies
In practice, the stock exchange represents a universe of variable income, and may present the same risks as other types of investments. However, even though many analysts see it as an unprofitable investment, it is still one of the most popular financial products. When we had double-digit interest rates, it was common for the CDI to beat the Bovespa index.
Investing in Shares?
With the Selic rate down (main index of fixed income together with the CDI), investors began to seek new alternatives in the market. In the United States, it is cultural, about 55% of the Americans, invested in the Stock Exchange.
Bye 2020, and so the year ended, and with it the anguish of thousands of investors who went through a nightmare in early March, where the market lost its positive momentum due to the coronavirus pandemic and plunged 30%, the biggest monthly fall on record since 1988.
Pressed by concerns about the spread of the disease in Brazil and worldwide, the IBOVESPA increased losses and accumulated a devaluation of 45% on March 23, when it closed the day at 63,569.62 points. Despite the sharp drop, the index recovered to 80 thousand points in the following month and has continued on a growth trajectory since then.
However, the stock market recovery in the year was notable and surprised investors. Many believed that the index would end the year in the negative field, as the pandemic lasted longer than expected and there was a large flight of foreign capital. However, some world facts have helped in a positive way. And among them, the result of the presidential elections in the United States, with the victory of Joe Biden, the positive results on the effectiveness of vaccines against COVID-19 brought optimism back, boosting the market.
Also in the year, 2020 surprised by the number of IPOs - initial stock offers on the stock exchange. There were 27 IPO's of companies from various sectors and there is a queue with dozens of companies offering proposals being analyzed by the Brazilian Securities and Exchange Commission (CVM).
See the list of companies that have already made an IPO in 2020 and how much they have raised:
- Neogrid (software manufacturer): R$ 486.45 million
- D'or Network (hospital network): R$ 11.4 billion
- Estapar (parking company): R$ 345.3 million
- Aura Minerals (gold manufacturer): R$ 790 million
- Ambipar (environmental management company): R$ 1.08 billion
- Grupo Soma (fashion retailer): R$ 1.82 million
- d1000 (pharmacy chain): R$ 400.2 million
- Pay Less (pharmacy chain): R$ 858.9 million
- Quero-Quero (construction material retailer): R$ 1.94 billion
- Priner (industrial engineering services): R$ 200 million
- Miter Realty (developer): R$ 1.02 billion
- Moura Dubeux (developer): R$ 1.25 billion
- Lavvi (developer): R$ 1.16 billion
- Locaweb (website hosting company): R$ 1 billion
- Petz (pet shop): R$ 3 billion
- Plano and Plano (real estate developer): R$ 633.4 million
- Melnick (developer): R$ 647.8 million
- Waterways: R$ 3 billion
- Cury (developer): R$ 977.5 million
- Boa Vista (financial services): R$ 2.21 billion
- Sequoia: R$ 905.8 million
- Mateus Group (food): R$ 4.6 billion
- Track & Field (clothing): R$ 454.7 million
- 3R: R$ 690 million
- Aeris (wind blades): R$ 1.1 billion
- Méliuz: R$ 583.4 million
- Enjoei (online thrift store): R$ 1.1 billion
The main highlights for the period are:
CSN (CSNA3) (385,34%), PetroRio (PRIO3) (367,51%), GOL (GOLL4) (289,75%), Via Retail (VVAR3) (285,94%), Usiminas (USIM5) (267,55%), BTG Pactual (BPAC11) (240,33%), Magazine Luiza (MGLU3) (226,39%), CVC (CVCB3) (205,31%), Metallurgical Gerdau (GOAU4) (184,25%) and Blue (BLUE4) (179,48%). However, not everything was good news, even with the Ibovespa's recovery since its worst moment in the crisis, not all actions managed to follow the same trajectory.
Complete the list of the 10 worst performances:
Telefônica Brasil (VIVT3) (2,97%), Sugarloaf Mountain (PCAR3) (3,12%), Cogna (COGN3) (7,51%), Ray Drogasil (RADL3) (9,90%), Bearing (RAIL3) (10,80%), IRB Brasil (IRBR3) (13,99%), Tim (TIMS3) (18,63%) and Embraer (EMBR3) (19,77%).
In the end, in the year 2020, the Ibovespa increased by 2,92%, to 119,017.24 points. The highest level of the index was on January 23, at 119,527.63 points. The result worsens the end of the losses seen throughout the year.
Before you start investing, the important thing is to have a financial plan.
Invest in FIIs?
Knowing the types of real estate funds (FIIs) available to investors is the first step for anyone who wants to invest in this sector. Created for those who want to expose themselves to the real estate market and receive passive income without necessarily buying a property, real estate funds are becoming more popular in Brazil.
To get an idea of the popularization of this segment, in the second half of 2020, there are already more than 1 million CPFs with FII shares in updated data. This almost exponential popularization is explained, in part, by the fall in the basic interest rate, the Selic, which forces investors to take more risk, in search of more attractive returns on equity.
Types of Real Estate Funds:
There is a wide variety of FIIs in the Brazilian market. We have listed their types here and will detail the characteristics and peculiarities of each one.
- Malls FIIs
- Corporate Lajes FIIs
- FIIs of Logistic Warehouses
- Hotel FIIs
- Educational FIIs
- Hospitals FIIs
- Bank branch FIIs
- Funds FIIs
- Real Estate Development Funds
- Real Estate Receivables FIIs (CRIs)
- Hybrid FIIs (Paper and Brick)
Among the most well-known FIIs of Brazilians are: the Malls, the Corporate Lages, the Logistics Sheds and the Hotels. However, Real Estate Investment Funds (FIIs) were directly impacted by the coronavirus pandemic in 2020, with shopping malls closing and companies returning corporate slabs. This directly affected the value of the shares and the income distribution of some of them. However, those who bought downtown, at the beginning of the pandemic, may already be reaping the fruits of the recovery at the end of the year, this happened because they are more exposed to the residential segment, which, in this case, was one of the most prominent sectors in the economic sphere. national.
In addition, a good part of these receivables is indexed to the General Market Price Index (IGP-M), known as “rent inflation”. Considering the results of the index's last 12 months, the cumulative high is over 24%. This partially explains the large dividends in the receivables segment.
On the other hand, those who invested in the PATC11, FLMA11 and BCIA11 Real Estate Funds in 2020 ended up suffering a devaluation of more than 35%. The first and second, focused on corporate buildings, were directly affected by the adoption of the home office by many companies.
Investing in Gold?
Like the dollar, gold, it is also one of the main assets that gain relevance in times of economic crisis and volatility.
In the scenario of the economic and health crisis of 2020, many investors looked for the precious metal to protect their assets. However, with high demand, prices worldwide have appreciated significantly, gold has remained promising.
Gold after the fall of March, and with the increasing demand for gold, the asset accumulated an increase of 42.65%, reaching its historical high, being quoted at R$ 2,085.82 on August 3, 2020, but reversing the trend of increase in the following months and closing the year quoted at R$ 1,904.69. Even so, it ended the year with an appreciation of 30,29%.
With the positive reaction on the stock exchanges and the prospect of controlling the pandemic with vaccination, the projection for gold would be between a stabilization of prices and even a reduction of it.
“In a normalization scenario, gold has already started to return gains generated in the previous cycle. We are slowly returning to normal. With mass vaccination, the world seeks to return to normal and, the economies, growing again. The trend is bullish stock, low interest, dollar oscillating between 5.20 and 5.70 and gold in a slight fall.
Investing in Cryptocurrencies?
When we talk about cryptocurrencies, the best known is BITCOIN, and this is normal, since much has been heard about the main cryptocurrency since 2009, the year when the first block was mined and starting the network that today is robust.
Bitcoin was one of the most valued investments in the world in 2020, ELE, started the year 2020 quoted at US$ 7,300.00 and jumping in early March to US$ 11,369.02, and showing up to then, an increase of 45,04% before the global pandemic decree, a fact that caused the world to enter a global downward movement and Bitcoin whose main reason for creation is to protect people from financial collapse and disastrous government interference, followed the trend of euphoria and thousands of Bitcoins were poured into the market causing the price to drop more than 107% in just one day being quoted at US$ 3,815.32 and thus dragging the entire market downwards.
However, Bitcoin has a peculiarity that is not found in other markets, in the same way that it fell abruptly, the next day, it started part of the recovery valuing 57% to later lateralize for a few days, and starts a bullish sequence with corrections.
However, in October it started a bullish sequence that would lead the main Cryptocurrency to double in price by 4 times and beat its historic top recorded in 2017 in the amount of US$ 19,672.02 dollars and between a strong rise and small corrections, Bitcoin closed the year close to US$ $ 30,000.00.
Two movements explain Bitcoin's appreciation in 2020
The first: It is about the entry of institutional investors in the market (Institutional investors are large investment funds, asset managers and qualified investors), who place bets on assets that can yield significant profits.
The second: The entry of these investors and added to the great value in their MaketCap, Bitcoin gives some credibility to the market that ranges between 950 billion and 1 trillion dollars, being 60% of this amount, comprising the total value of all Bitcoins added up.
Fidelity Investments also announced in October the creation of a fund for institutional investors with a focus on digital assets. Square, the payments company of Jack Dorsey, founder of Twitter, invested US$ 50 million in bitcoin last October. In December, MicroStrategy invested US$ 1.1 billion in bitcoins and what about Grayscale, the largest crypto asset manager in the world, beat its daily record for invested value, raising about US$ $ 700 million. Cryptocurrency fund CEO Michel Sonneschein said the company last year saw a surge in demand for digital assets, especially bitcoin (BTC) and so-called altcoins (alternative digital currencies). In the fourth quarter of last year alone, Grayscale raised more than US$ 3.3 billion with crypto.
In an official publication, the company points out that the investor profile consists of 93% by institutions, and not by individuals. In addition, the company's bitcoin fund (BTC) is currently the largest in the world, with 610,000 units, which equates to approximately US$ 27 billion.
However, with the inflow of money from several investment funds, Bitcoin started the year like the previous one, breaking records after records, reaching its historical value of US$ 41,872.30 dollars and becoming the most valued asset, surpassing 990% as shown in the chart above, starting on the day of the crasch until its peak in January 2021.
In reais, the cryptocurrency went from R$ 29,399 to more than R$ 220,000.00 in view of the appreciation of the dollar against the Brazilian currency.
The Cryptoactive Products that most appreciated in 2020:
In 2020, the main cryptocurrencies were: Bitcoin, Ethereum (ETH), USDT (Tether), XRP, Link (ChainLink), BCH (Bitcoin Cash), BCHSV (Bitcoin SV), ADA (Cardono), FOS (source of information) 30/09/2020).
Cryptocurrencies, the 10 most promising, listed in 2021 (at first), are: Bitcoin (king of digital assets), Stellar (XLM), Tezos (XTZ), Binance Coin (BNB), UNIswap (UNI), Ethereum ( ETH), Polkadot (DOT), Cardano (ADA), Vechain (VET), Chainlink (LINK).
The macro data indicates that 2021 will be a unique year for the cryptocurrency market.
However, success, in any of the investments highlighted, will only be successful if we have: planning, tranquility because we know, in a hurry, can lead the investor to great losses, always seeking to be well informed, seeking the guidance of professionals of excellence.
Despite the optimism, experts say that investors need to be careful not to fall for scams and to minimize the risk of Bitcoin devaluing. You have to invest little by little and minimize losses.
Care before investing
Before buying bitcoins the investor needs to be aware that this is a highly fluctuating investment, with strong up and down movements. “When investing in bitcoins, people have to be aware of the strong price variation and the risks that these fluctuations bring.
People are not used to this and can be scared, investing in bitcoin should not be thought for the short term, for immediate gains, but in the long term.
Another tip from the experts is to run away from any company that promises quick enrichment or magic formulas to get rich quickly. The risk of a blow is enormous.
Lesson for new investors:
"What remains as a legacy with this pandemic is that we still need to fulfill the first and most basic lesson to venture into these markets, that is, before talking about starting, Brazilians need to learn about finance to start investing".
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