Why alternative investments? & Why Pre-IPO?

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We were set for a prosperous 2020 prior to the pandemic. Predicted by Forbes as “The Year of the 3 Big E’s” – earnings, the economy and the election. [1]
Although not wrong, 2020 has definitely impacted us in ways we least expected.

It has certainly changed the way in which people buy and investing behaviour is proving to be unpredictable.

Although we are living in unprecedented times, it doesn’t mean you shouldn’t be looking to expand or diversify your portfolio. Diversification is the key to investment success and security and there may be golden opportunities you’re missing.

We’re going to share with you some of the most promising investment criteria, amid the pandemic whilst preparing you for 2021.

 

Pre-IPO opportunities

The benefits of a pre-IPO…

If you purchase shares in a company prior to its listing on the stock market you are subsequently purchasing it at a discounted rate, due to the expected share price increasing at the time of the IPO, maximising returns.
There are some promising pre-IPO opportunities particularly with emerging, alternative asset classes such as cryptocurrency, medicinal cannabis and cloud-based data platforms.

The price of bitcoin could hit $300,000 (£225,000) next year – more than 16-times its current value – according to a leaked report from Citibank.[2]

And in 2018, the global medical cannabis market was worth $13.4bn, with a projected compound annual growth rate of 26.4%; meaning its value could increase to $148bn by 2026. Sales of products containing CBD reached $1.9bn (€1.71bn) in 2018; and are expected to rise to $20bn (€17.98bn) by 2024.[3]

By investing prior to a stock market listing in these markets you’re setting yourself up for tremendous returns.

 

Pharmaceutical giants

GW Pharmaceuticals is a British pharmaceutical company known for its multiple sclerosis treatment product nabiximols which was the first natural cannabis plant derivative to gain market approval in any country. This was a huge breakthrough for medicinal cannabis treatment and gained a large portion of market share in the industry for a clinically proven epilepsy treatment. [5] Buying shares in a pharmaceutical giant is appealing and can provide you with an ethically focused investment which is becoming a popular criteria among many investors.

Many medicinal cannabis companies are operating with the objective to export their produce to pharmaceutical customers via wholesaler and distribution meaning high yield and high returns for investors. These companies range across the seed-to-sale journey and include cultivators, manufacturers and research and development operations.

In conclusion, which up-and-coming markets to look out for in 2021?

Pre-IPO opportunities are to be looked at kindly particularly in alternative markets that hold ethical value.

Don’t fail to act during this economic crisis, inflation is rising daily and savings are becoming devalued and interests rates are low, investing is one of the only ways grow your net worth in the current climate.

To view a portfolio offering all of the above within one investment vehicle please visit JPD Capital

 

References

  1. https://www.forbes.com/sites/advisor-intelligence/2020/01/03/top-10-investment-themes-for-2020/?sh=54eb36ba1e02
  2. https://www.independent.co.uk/life-style/gadgets-and-tech/bitcoin-price-all-time-high-forecast-2021-b1759127.html
  3. https://www.healtheuropa.eu/investing-in-the-cannabis-industry/99726/
  4. https://en.wikipedia.org/wiki/GW_Pharmaceuticals

 

 

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