If you’re planning on investing money this 2021, you need to be aware of the different market trends to make sure your money will grow. Several markets continue to fall, while some rise, so how can you pick which ones you should commit to?
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- Boost of Pharmaceutical Stocks
With the continuous production of COVID-19 vaccines to supply around the world, pharmaceutical stocks will continue to rise. Some of the vaccine creators that will surely benefit from this are Pfizer and Moderna.
Along with the rise of vaccines are the essential components needed to store and transport them. For example, Pfizer’s storage temperature is below the freezing point. So, cold storage producers will also have an increase in production and be at an advantage.
- Rise of Transportation Stocks and Restaurants Stocks
Since more than half of the population are vaccinated in the USA, soon enough, people will travel and eat in dine-in restaurants without the threat of the disease. Transportation stocks and restaurant stocks can get back on track and pick up from where they were before the pandemic started.
- Beware of Decline In Traditional Media
There were expectations of an increase in traditional media, such as television, during the lockdown. However, the TV channels reach a falling rate of 16%. Digital media entertainment, such as Netflix and Youtube, has killed traditional forms of media and will continue to rise even when the pandemic is gone.
- Collapse of Traditional Banks
Digital wallets and lenders continue to rise and pose threats to traditional banks. Square’s Cash App and PayPal’s Venmo are the two digital wallets patronized by over 60 million users in the US. This implies a shift to a decentralized financial system. There’s even a possibility that physical banks will no longer be needed. Everything will be digitized instead.
- Cryptocurrency Continues Surge
Cryptocurrency has had an impressive increase since 2017. To adjust, more institutions and countries have adopted the decentralized currency distributed in the form of a blockchain ledger. El Salvador even became the first country to accept Bitcoin as a form of national currency.
Additionally, the crypto market has been accessible to more people since crypto exchange applications increased, and investors continue to pour into the market.
- Environmental, Social, and Governance Investments Increase
In 2020, there had been many protests concerning racial discrimination conducted in America with the deaths of George Floyd and Breonna Taylor. Consequently, many advocacy groups have been pressuring companies for equal pay, shedding light on racial pay gaps. And because of this, more companies have answered the call of the people to commit to racial justice.
Now, more investors are interested in companies that have an ethical commitment to the people and environment. A study has stated that ESG or Environmental, Social, and Governance investments will reach $38 trillion worldwide by the end of 2021 and $53 trillion by 2025.
The pandemic has brought many changes in the economy, stock market, and crypto market. It’s up to you to choose where to invest your money at a time like this, but be smart enough and do research before entering any investments. Take advantage of opportunities while they’ll still be available!