2021: Where to Invest
By: Ziad K. Abdelnour
As we all know, 2020 called for great adaptability and a pivot that investors were not immune to. The sudden shift in markets left many investors frazzled on where to turn. It’s no secret that investing in telehealth was a big trend this year. But there were other big winners this year as well. Many fast-food restaurants did fairly well, especially those that had the means for delivery. Virtual communications services like Zoom, saw great fortune as well. And of course you can’t forget The Big 5, that all saw a rise in market use. But as we’ve seen before, the only constant in business is that it is constantly changing. Therefore, 2021 will certainly call for new investment strategies. Thus, there are a few markets you should be keeping an eye out for.
It’s not a surprise that a lot in the market is riding on this race for the most effective Covid-19 vaccine. And with the mass hysteria that was created around COVID, demand is pretty high for the vaccine. Not to mention, that the democrats in office, there will be an even greater push to scare the public into buying into the vaccine. In some cases, there have even been threats to force the hand of people who do not want to take the vaccine but taking away the freedom to travel, enforcing restrictions on reentering the workforce and radicals may even push for fines and/or jail time. Nonetheless, vaccines will be bought in the masses and bring in substantial revenue. Of course, those who made early investments into the Covid-19 vaccines will be the big winners, but it’s not too late for you to get in on the winnings too.
Travel and Hospitality
With taking a big hit this year, travel stocks will rise from the ashes with the introduction of this vaccine. With the increase in people that feel “safe” due to the vaccine, more people will begin to move around. After being locked down and away from others, there is a widespread urge to get back out into the world. Airlines, hotels, and even cruises will start to see increased activities following the implication of the Covid-19 vaccine. Airline stocks have already been slowly increasing and with 2021 just around the corners, now is a great time for you to hop in while the market value is still relatively low.
Oil and Gas
This one is simple. With increase in travel and mobility, the oil industry will certainly make its come back. Since taking a hit this year due to the pandemic, the market value has been lowered. You may want to consider jumping in now before the market value shoots back up and stabilizes at a higher rate.
WFH Related Stocks
One thing is clear, we will never return to “normal” and some of the things we have recently adapted will be here to stay. Remote working is one of those things. Even with vaccines, many companies will permanently keep this arrangement for a variety of reasons. It saves costs, it’s a lot easier than transitioning out and there’s still big uncertainty around where this COVID rabbit hole will take us. These are stocks to really keep an eye on. They will be great long-term investments in the long run even though we may see a short-term decline with the introduction of the Covid-19 vaccine.
All in all, the market will see some big changes in the year 2021 as we continue to try to adapt to a new normal. As an investor, it is important to not only examine current circumstances, but to look to where we are heading. Do your research, take advantage of certain market areas while they’re low and be smart about where you put your money. After a tough year for us all, there is room to look forward to big wins in 2021.