As 2020 reaches its finale, investors are looking ahead to 2021. However, following such a tumultuous 12 months, tensions ongoing between the US and China and the political landscape uncertain, spotting the best investment options is not that easy.
To save you scratching your head, here are a few ideas from the experts for investment opportunities in 2021.
Government spending
Government spending is predicted to increase in key areas such as healthcare, with taxes rising to cover the cost. Infrastructure is also expected to expand, with a move towards digital platforms for greater efficiency.
Telehealth, in particular, is likely to be a crucial area; doctors are starting to realise just how many more patients can be seen with virtual appointments rather than visits to the practice in person.
All of this offers exciting opportunities for investors who can hop on board these hot trends. Healthcare, and also pharmaceuticals, will be industries that show real potential for returns in 2021.
Diversify your portfolio
Less of a hot tip and more general advice, 2021 is the year to make sure you are not exposed to more risk than strictly necessary. With lots of volatility in the market, there is the potential for investments to swing rapidly. Therefore, it’s essential to ensure you are protected.
Rather than investing in a single stock, opting for ETFs or CFDs could offer a viable alternative. If you’re new to CFDs, you can find top global CFD trading advice here.
Business tech and communication
2020 has revolutionised the way we work and live, offering a better balance with less time spent commuting. Smart tech has come to the fore, with devices providing the means to connect and communicate more valuable than ever before.
This is set to continue, and companies linked to digital technology could experience strong growth in 2021. Accelerating demand for more efficient and accessible technology will drive the sector and provide opportunities for profit.
Look for poor performers
Specific sectors and companies have had a storming 2020 – but might have reached their peak. While there is room for growth in evolving industries such as tech, others are more likely to plateau. Takeaway food is an excellent example of this; a positive 2020 is unlikely to offer up much potential for 2021.
By contrast, sectors which have experienced a drop in demand could be the dark horses for 2021. At some point, hospitality and travel will bounce back, and when they do, there's an enormous amount of capacity for a good investment.
Green energy
Donald Trump has been a controversial figure in the Whitehouse for many reasons, but as a staunch opponent to the science of climate change, green energy has taken a battering.
Now with Joe Biden as president-elect, there's renewed chatter around renewable energy and infrastructure for alternative energy. Coming from a depressed level and given new life under a Biden presidency, the energy sector is a strong contender for the year ahead.
Disclaimer: The information provided in this article should not be construed as investment advice, advice concerning particular investments or investment decisions, or tax or legal advice.