Almost every investor has gone through a tough time last year. Although the year 2020 has shown us that we can never predict what every year will bring, here are some trends that may define 2021.
- A Boost in Pharma Sectors
- The Digital Assets
- A Slowdown in Tech Stocks
- Money Uncertainty
- Renewable Energy
If you are looking for major investing trends for this year, read this post till the end.
Top Investing Trends for 2021
The year 2020 has taught us that we can never become certain about investments. However, a successful investor always prepares for every market condition. So, here are the major investing trends that may help you to prepare for 2021.
A Boost in Pharma Sectors
There may be a boost in the pharma sectors if the industry can come up with vaccines to bring the impact of COVID-19 under control. There are some public companies who are working towards coming up with vaccines that may be the winners.
So, it’s better to keep an eye on the pharma sectors that are working on creating the vaccines. Apart from that, some logistics companies will also get benefitted from it. Since the vaccines need to be distributed, investing in logistics can also be beneficial.
The Digital Assets
Although most traditional investors were skeptical about cryptocurrencies, they had realized the potential in 2020. Since Bitcoin and some notable cryptocurrencies gave significant returns even during the lockdown, the crypto market has gained momentum.
Among all the virtual currencies, Bitcoin made every investor surprised with its value. Have you invested in any cryptocurrencies? Visit thesportsdaily.com to invest in Bitcoin that offers you a friendly trading interface.
There May Be A Slowdown in Tech Stocks
Tech stocks performed well in the year 2020. However, many stock analysts predicted for a long time that the rally in tech stocks would eventually come to an end in 2021. Since there are many lawsuits against the tech giants like Google and some other big players in these sectors, it’s better to be careful about tech stocks.
However, it’s uncertain how Biden’s administration will handle the cases that were filed against Google. So, if you are looking for tech stocks, stay updated with the latest news and events in the tech sector.
One of the important aspects of 2021 that will have an impact on investments is likely to be the speedy recovery from COVID-19. Will this year bring more social gatherings and travel opportunities? Or will the coronavirus impact still be widespread? It all depends on the time we will need to come up with successful vaccines.
Unless all the normal businesses run in full-fledge, there will be uncertainty in the stocks, and that will ultimately affect the economy. When the economy is affected, it will affect the value of money. So, there will be uncertainty as long as we come up with vaccines for coronavirus.
There is a high expectation that the renewable energy sector will grow more than 12% by 2023. However, the impact of COVID-19 and some policy issues caused delays in the projects. The new president of the US, Joe Biden, focuses on reducing coal and fossil fuel power projects. He aims to re-enter the Paris agreement. It may influence other nations to focus on the renewable sectors too.
As a consequence, the oil and gas sectors may not perform well in 2021, while the renewable energy sector may grow. So, investing in renewable stocks and ETFs can be profitable in the coming years. Another important factor is the adoption of electric cars will boost this year.
These are the five major investing trends that will define 2021. If you are thinking of any other themes that could affect the investing world, don’t forget to share in the comments section. On a final note, investors need to diversify their portfolios with different assets, which could minimize their risk and bring long-term returns.