To put it very mildly, 2020 was a turbulent year for multiple industries around the world, which brought about one of the most volatile markets in history for investors across the globe.
We all hope that 2021 will bring about the end of the turmoil but we certainly aren’t out of the dark yet as COVID-19 continues to impact jobs and spending, which can make for an unpredictable market and difficult to understand investment trends.
Despite this uncertainty, savvy investors are always seeking out opportunities and, no matter the current economic climate, there are always opportunities to be had.
Some people perceive investing as simply gambling, akin to playing casino slots or Roulette.
However, this couldn’t be further from the truth as long as you keep a close eye on the economy, industries, and markets. By keeping your ear to the ground, you can spot trends early enough to profit from them by investing in the right places.
To help you spot some of the potential trends for 2021, this article has listed some investing trends we expect to see throughout the year.
2021 investment trends and opportunities
It has to be noted that there is also risk associated with investing. Even though you can take precautions and do your research to lessen the risk, nothing can be guaranteed so you should never invest money that would be detrimental to your life if you were to lose it.
With that being said, arming yourself with as much knowledge as you can is a great way to find safer investment options. So, here are some potential 2021 investment trends you can take a look at this year.
Working from home was forced upon many of us in 2020. Not only does that theme look set to continue for 2021, but it is also likely to become the new normal for a huge number of people.
Both employers and employees have now seen the potential benefits of having their teams work remotely, which means many are likely to continue with the arrangement even when office spaces are open for business as usual, whenever that may be.
With more people working from home, there is a much greater need for strong cybersecurity measures. During the previous year, the cybersecurity industry has already seen good growth but there is still an opportunity for more and many investors will be looking to take advantage.
Green energy and ethical investing
This one covers quite a broad range and multiple industries but looking out for companies who are looking to have a positive impact on the planet and become eco-friendly could prove to be a good strategy over the coming years.
The impact we are having on the planet is an ever-growing talking point and has been the subject of huge debate over the past few years.
The global pandemic seems to have pushed this type of investing even further. People have now had a taste of what it is like to see the world in a truly dire state and have become more cautious of a similar state occurring due to factors like carbon emissions.
To add to this, Biden’s presidency is likely to see a positive impact in this area, particularly for stocks in the renewable energy sector as he has already made it clear he aims to reduce reliance on fossil fuels in the US.
Now, this is one you should be wary of but also need to keep tabs on. Last year, the travel industry was hit dramatically and was in crisis and it could well be much of the same this year.
However, if the world can start to return to some normality in 2021, the travel demand could spike a gold-rush for the industry.
It is already clear that people are frustrated and frankly sick of being restricted in terms of travel. It also looks likely even tighter restrictions could be placed on travel in many parts of the world, which will only lead to further frustration and longing to be able to travel again.
A lot of people will have family they can’t wait to see and cancelled trips they can’t wait to rearrange. With travel stock prices down, there are opportunities out there for those who time it right.
Unfortunately, as we have already seen recently, travel is an industry where the current world situation can strike it down almost instantly so you need to be very cautious with this one and watch potential market-moving factors like a hawk.
As mentioned earlier, more companies are now taking a remote approach to running their offices. Not only that, brick and mortar businesses have seen the negative impact that not having an online presence can have for their businesses.
All of this has led to a serious speed-up in the digitalization of our world. Working, shopping, exercising, and socializing are just a few of the things where it has become the norm to do over the internet.
Companies that offer cloud-infrastructure services are sure to be in high demand as businesses strive to create an online presence for themselves in 2021.