Some of our stronger domestic investments are definitely making themselves known to those who are connecting the dots. A rock-solid economy, AAA ratings by rating agencies and a robust COVID-19 response have made worldwide investors sit up and take notice. In an increasingly challenging and unpredictable financial landscape, Australia’s resilience and year on year growth make it an attractive proposition.
Here is a look at three exciting investment areas that are catching the eye of Australian investors.
Online retail and fintech are substantial growth areas, yet 2020 also saw rice growing and gold ore mining increase. Despite this, with its abundance of natural resources, Australia’s highly developed mixed economy is primarily dominated by a booming service sector. This tertiary market makes up over 60% of GDP and employs about 80% of Australians. The pandemic has opened up some intriguing investment possibilities in distressed tourist and hospitality assets.
Pre-pandemic, visitor rates were growing 5% or more a year. With high domestic travel and proximity to the Asian market, Australia’s unique qualities mark it as a popular tourist destination. Furthermore, covid vaccines are expected to be rolled out for the general public during 2021. As a result of this, investment in tourism and hospitality in regional Australia is an opportunity that deserves exploring.
Government infrastructure projects are committed longterm to this area—the potential to transform domestic investment in these regions is immense. From the countries famous food and wine regions to nature and wildlife, and not to mention culture and heritage, the Australian tourism industry presents one of the more underexploited visitor destinations.
Another strong player to consider is regenerative agriculture. Sustainable, responsible investing (SRI) is growing in popularity, with several projects focusing on permaculture and environmental developments. Food, farming and work to restore the land to support life have the support of some familiar faces, like David Pocock. Improved land management practices and technologies promise higher and more sustainable yields, meaning a boost for Australia’s exports. An increase in exports could very well mean a greater profit in our domestic investments. This could put us ahead in such a way as to improve foreign interest in our own backyard whilst giving something back to our own.
After a wild 2020 that saw it record its all-time high price of just shy of $20,000, Bitcoin more than doubled its price this year. A history of volatility has left some investors cautious, but with the regulatory and institutional investor breakthroughs this past year, mainstream adoption is no longer a pipe dream. As merchants increasingly accept Bitcoin, and it gains popularity in emerging markets like South America and India, the cryptocurrency has plenty of room to grow. Indeed, it may just deserve all the attention it’s getting from investors. As far as investment goes, Bitcoin is something which everyone is starting to get on board with.
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