The Best and Worst Investments for 2021, According to 5,000 of Americans

A recent survey commissioned by Sophisticated Investor found that a majority of Americans view real estate, stocks, and bonds to be the safest investments in 2021.

The survey asked nearly 5,000 people the following question: Which of the following investments do you think will do best in 2021?

Real estate
Stocks & bonds
Gold & silver
Savings account at the bank
Cryptocurrencies (Bitcoin, Ethereum, etc.)
Fixed annuities
U.S. Treasury-issued securities

Which Investments Will Do Best in 2021?

Out of everyone surveyed, 27.33% of Americans found real estate to be the safest investment in 2021. Following a tumultuous year in the housing market, Americans view property to be the most secure and stable investment.

Interestingly, women were more likely to view real estate as a better investment than men. Based on the survey results, with demographic filters applied, 30.7% of all female respondents indicated that they had the most confidence in real estate. Conversely, only 23.7% of all male participants chose this option. Women 55-64 years old were the strongest cohort in favor of real estate with 33.6%.

Instead, 27.9% of men felt that stocks and bonds were the safest investment and their preferred asset in 2021. Only 22.7% of females agreed. Furthermore, 31.1% of men ages 55+ found stocks to be the safest investment.

“This survey provides vital and compelling analysis into which assets investors have the most confidence in, now that we’re in the throes of the COVID-19 pandemic,” stated John Karr, COO of Sophisticated Investor.

The reasoning for the gender divide isn’t entirely understood, but some surveys in the past have found women to be more patient and risk-averse when choosing investments, making real estate the more sensible option.

Among the other asset options, gold and silver placed third, with 18.24% of survey participants voting in favor of it. Savings accounts came fourth, with 10.74%. The emergence of cryptocurrencies in recent years led to 8.66% choosing this option. Finally, fixed annuities (5.47%) and U.S. Treasury bills (4.37%) rounded out the list as the least favored assets this year.

The Bottom Line

With 2020 being one of the most unpredictable and unprecedented years on record, it’s hard to imagine what will happen in 2021. It will be interesting to see how this year’s economy shapes up with a new presidential administration and vaccine distribution growing by the day.

While you can never be sure whether investments will pay off, historically, real estate has generally proven to be safer than other securities.

What are you investing in this year? Why?

Tell us your thoughts in the comment section below.

Note By BiggerPockets: These are opinions written by the author and do not necessarily represent the opinions of BiggerPockets.