What can we say about 2020? Is there even one word that can attempt to summarize this roller coaster of a year? For some, lots of money was lost while for others, fortunes were made. All we can hope for is that 2021 brings us a bit more stability. Savvy investors are wise to start looking for the best investment opportunities in the UK and beyond in 2021. There are countless talking points but here are a few to get you thinking.
Tech stocks. Long thought to be the gem of any successful investment portfolio. However, analysts are saying that’s starting to change. This is not the early 2000s anymore. The seeming endless bull run for tech giant stocks like Google and Apple is finally coming to a close. Keep an eye on what happens regarding politics in the United States of America.
For the past four years, President Trump rode Google and other tech giants hard which led ot massive antitrust laws against Google and the company. If Joe Biden is to win the election, it’s not entirely clear if he will continue this progressive behavior but generally speaking, it seems the public does not look at such companies as favorably as in the past.
Well, actually according to the Chinese lunar calendar, 2021 is the year of the Ox but thanks to a particular bat that may or may not be responsible for the spread of Covid-19, 2021 can be officially labeled as the “year of the bat” for investors. Why? The answer lies within Covid-19 vaccines.
The pandemic killed many sectors of the economy but in their wake arose new opportunities in the healthcare and pharmaceutical industries. If we contain Covid-19 in 2021 as many doctors predict, that means a major victory for science. For those that want to make some short to mid-term profit, look for investment opportunities in vaccine producers like Pfizer (PFE) or Moderna (MRNA). Other companies working on therapeutic treatment drugs for Covid-19 will also experience a nice boost like Regeneron (REGN) for example. Don’t rule any company out in these actors as the potential is almost limitless.
In the long term, many analysts see a Joe Biden victor as a bad outcome for international stock markets but in the short term, there are some nice investment opportunities to be had. The truth is, regardless of who wins the American election, a small bump of sorts is expected. Historically speaking, stock markets generally do well immediately after an election since there seems to be an essence of new hope in the air. However, with Biden’s plan to raise capital gains taxes on the rich, this could easily have a long term negative impact on the stock market.
As always before investing, do your due diligence to ensure you make the right decision on every investment. In both bull and bear markets, there are opportunities to be had so put on your thinking cap and dig in. This article will just get you started on a few things to look out for but the rest is up for you. Happy investing!