Financial prognosticators had a rather tough job making predictions for 2021 with all signs pointing toward a global economy that would spring back to normal as the world began to recover from the pandemic. Yet questions surrounding the ongoing vaccination, new virus strains, and the mishmash of reopening policies have led to a shroud of uncertainty within financial markets worldwide.
Also read: Market Analysis Today: Dow Jones, S&P 500, Nasdaq, Bitcoin, Ethereum & Stock Trends: 21 June 2024.
If 2020 has delivered us quite a few surprises, it is that predicting the course of a pandemic is difficult, even for experts. However, now, at the midpoint of 2021, the situation looks more on the clear side, though nothing is ever entirely evident. The only obvious thing is the exceptionality and smoothness of Exness Forex trading platform offering metatrader 4 download option you need to check out right now.
So here is the financial experts’ outlook on current stock market trends and the best strategies for you to take financial advantage in 2021.
Table of contents
Trends and strategies
Eco investing
When global travels were shut down by Covid-19, demand for oil diminished so much that oil companies began paying their shareholders to dump stocks. There was nowhere to store the excessively produced oil, and halting extraction operations were too expensive.
When oil stocks performed poorly, it made a lot of people reconsider investing in eco-friendly businesses and startups instead, with many financial experts fearing that the past year’s economic fallout could happen again if we fail to reduce carbon emissions.
Best green companies to invest in:
- Tesla (TSLA)
- General Electric (GE)
- Siemens Gamesa Renewable Energy (GCTAY)
- Vivint Solar (VSLR)
- Waste Management (WM)
- Fuel-Tech (FTEK)
Technology
The lifestyle trends of 2020 are here to stay this year: we got acquainted with working from home and shopping online.
According to the latest research, it is estimated that about 25% of the urban population have made permanent changes to their lifestyle and specifically to the way they work and shop. With that, even when the crisis ends, many staff won’t get back to spending five days a week in their offices.
Thus, cloud technologies, online retail, and consumer electronics services are the ones to keep an eye on in 2021. Also, companies specializing in cyber and AI software development will continue to generate superior profits growth in the upcoming years.
Best tech investment options include:
- Netflix (NFLX)
- Amazon (NASDAQ:FB)
- Zoom Video: (ZM)
- Alphabet (NASDAQ:GOOG; NASDAQ: GOOGL)
- Shopify (NYSE:SHOP)
- NVIDIA (NASDAQ:NVDA)
Real estate
A Real Estate Investment Trust (REIT) is a company that runs income-producing real estate. It includes apartments, commercial, office, warehouses, hospitals, and hotels.
REITs offer an easy way for individuals to invest in real estate without purchasing property themselves. Instead, you invest in a trust with other fellow investors to jointly sponsor a real estate project.
Some types of REITs do perform better than others, with an apartment and industrial REITs producing probably the highest dividend payouts last year.
REIT companies to check out:
- Prologis (PLD)
- Global Net Lease (GNL)
- AvalonBay Communities (AVB)
- WP Carey Inc. (WPC)
Cryptocurrency
Bitcoin has established itself as the most popular cryptocurrency and has made a massive 525% profit for investors in 2020.
And though investing in cryptocurrency could make you a fortune literally in no time, there are still some risks that go with this type of investment, such as high volatility. That’s why be sure you don’t invest your life savings in this asset.
There are quite a few cryptocurrency types to choose from depending on your risk tolerance. The cryptocurrencies include the most widely spread cryptos Bitcoin or Ethereum, and the newer cryptocurrencies like Dogecoin and Safemoon, which are even more risky since little is known about them.
Precious metals
Precious metals generally make for a safe investment that is resilient against inflation. In particular, gold seems appealing at the moment, yet when compared to stocks, gold is not always a reliable source of financial growth.
In addition to investing in gold directly, you can also invest in the businesses that mine precious metals instead.
Here are some of the best ways to invest in gold:
- Purchase solid gold
- Buy shares of gold mining companies
- Invest in a tracking fund that monitors the price of gold bullion
- Get yourself a tracker fund mimicking the performance of gold mining companies
Gold mining businesses to consider:
- Torex Gold Resources Inc. (TXG.TO)
- Calibre Mining Corp. (CXB.TO)
- New Found Gold Corp. (NFG.V)
- Endeavour Mining PLC (EDV.TO)
- Argonaut Gold Inc. (AR.TO)
China markets opportunities
The Chinese seem to have handled the pandemic professionally and are steadily building up their economy. Today leading multinational companies, including ExxonMobil, BMW, and Allianz, are increasing their investment presence in China, inviting other companies and individual investors along, which is pretty good for the Chinese stock market.
China-based companies, like the social media platform TikTok have been phenomenally successful these years. So, there’s no doubt that Chinese businesses are getting even more exposure in the upcoming years, with more and more people considering investing in Chinese companies or multinational companies operating in China.
China-related investment opportunities include:
- Tencent (TCEHY)
- Baidu (BIDU)
- Alibaba (BABA)
- Morgan Stanley Asia
- Allianz China
- InterContinental Hotels Group
