As the Covid-19 virus continues its deadly stroll across the globe, shutting down businesses and weakening economies, investors and traders cannot but feel apprehensive. While some high-risk trading tools like online CFDs and spread bets have enjoyed an upsurge in popularity over the past 12 months, the global financial markets, in general, remain uncertain and occasionally panicky.
To survive in this volatile economic environment, one must adjust their investment plan to address the unique challenges and opportunities that the Covid-19 era has introduced. Here is our top-3 list of the most exciting investment trends to watch in 2021.
3 Investment Ideas to Explore in 2021
It is never entirely possible to forecast investment trends; still, the following topics are sure to be of much interest throughout 2021:
Trend #1: Covid-19
There are two ways for businesses to accommodate the long-term effects of the pandemic and fatten their profits in 2021 – boost sales and reduce costs.
Healthcare stocks are likely to experience an increase in sales this year. It is particularly true for those concerned with the development and production of vaccines. The top-5 healthcare stocks to monitor in 2021 are JNJ, UNH, PFE, NOVN, and MRK.
Tech companies will also continue to experience growth this year as more and more people engage in the distance working, studying, entertaining, and shopping. That said, as soon as the lockdown measures are permanently relaxed, their stock value is likely to decrease.
What to do: as the pandemic continues to cause turmoil across the financial markets of index futures, stocks, forex, and others, one way to make quick profits is to speculate on CFDs and spread bets. Not owning the physical assets, you can cash in on both – their falling and increasing prices.
Trend #2: Biden’s presidential term
It is yet unclear how Joe Biden’s presidency will affect the stock market or if his administration will be able to make good on the promises to provide the so-much-needed boost to the economy of the United States.
We know of Biden’s plans to play tough with tech companies, promote sustainable green efforts, and boost taxes on the wealthy. However, with the Republican majority in the Senate, there is no telling if any of those initiatives will come through.
What to do: with Biden as the new U.S. President, investors may want to consider focusing on green energy, marijuana, and healthcare stocks and steer clear of the tech and firearms sectors.
Trend #3: Sustainable energy
Even though the Covid-19 outbreak delayed a big part of green energy projects last year, renewable energy is still a promising sector of the U.S. economy, expected to grow at a CAGR of over 6% in the next five years.
With Joe Biden claiming that he intends to lower the United States’ reliance on fossil fuels and re-join the Paris agreement on climate change, we may anticipate an even more substantial growth of this industry during his time in office. And be sure to check out this site for additional options.
What to do: you may want to think about investing in renewable energy stocks and ETFs via a trading account. Alternatively, if you do not wish to accept responsibility for the underlying assets, you may opt to speculate on spread bets and contracts for difference.
What 2020 taught us is that we can never really know what to expect or fully prepare ourselves for what is coming. Still, we dare to assume that the above trends will be prevalent in 2021 and affect how everything, including the financial markets, will work.