There is no more dramatic year than the year 2020. Every industry has faced a roller coaster in its growth perspective. Not to mention the S&P dropped by 33% in March but started to gain in double digits in December end. No one could have foreseen it or predicted that when the world is going to halt some sectors will be getting a boost. It makes it quite clear that the market is highly unpredictable therefore it’s really important for investors to make strategic investment planning.
With multiple fluctuations in the market in 2020, the year 2021 holds the promises for investors but it is advisable to remember that predicting an uncertain market for definite profit would be a typical mistake you can do right now. Therefore, after studying various sources we collected here the six market trends for this year that have the potential to gain attraction from all around the world, owing to the beginning of the end of the COVID-19 era.
During the lockdown period in countries, the enterprises learned the importance of the cloud. With the increasing demand for digitization of processes and the expectation of seamless operation while working remotely, the cloud came up as the one-stop-solution for everyone; whether it is education, hospital, business, healthcare, retail, or supply chain.
According to last year’s report released by the International Data Corporation the five-year forecast on public cloud service and infrastructure is expected to receive the compound annual growth rate (CAGR) of 22.3% between 2019 and 2023. Specifically, infrastructure-as-a-service stocks are expected to be the fastest-growing trend within the cloud (a CAGR of 32%.)
The figure mentioned in the IDC report and market demand makes it quite clear that the cloud can be one of the best bets for investors in 2021.
One Drug fits for all is out of the picture now. As we have seen that Corona has impacted people differently. With few of the common symptoms, it became quite difficult to figure out how to treat the infection as everyone was showing multiple symptoms. Precision medicine is a practice in healthcare that allows providers and researchers to come out with a more accurate preventive solution for particular patients. Or in a directed way, we can say Precision Medicine means personalized drugs, devices, services.
In the coming future, most analysts are considering that global precision medicine can accrue the growth of 10% to 12% annually over the next five to seven years. Again, not the fastest growing industry, but one of the exceptionally safest floors.
To put a full stop to the covid pandemic, the healthcare & life sciences and medical research team came out as winners with the creation of the fastest-vaccine ever. With people becoming more health-oriented and getting serious about the health-related issue as the impact of the pandemic; the creation, distribution, and sale of the covid vaccines give investors three opportunities-via-one to invest in 2021.
Sure, there will be hiccups to get back to normal and it is uncertain how quickly this vaccine will slow down the spread of the covid virus but the optimism this vaccine brings will surely give some microeconomic results. Hence, investing in drug giants such as Pfizer can turn out to be a market-oriented investment strategy.
A smart investor never forgets the obviousness of investment. The obvious principle behind the mere existence of food stock is everybody got to eat. Food is one of the basic necessities that is never going to stop no matter how strong or what kind of pandemic/calamities hit the world. In fact, as seen last year its demand is only going to increase. While food researchers and companies are coming up with new ways to trick our taste or dietary habit, it is prevalent that the food industry is an unstoppable sector to grow.
Investors just need to find the right name that plays a major role in people’s daily food intake. For example, Mondelez International, Tyson Foods, and The Kroger Co. are the food industry’s top three names that investors should bite into.
It is known that the travel industry has suffered the most during the lockdown. Though many industrialists have taken the hit, yet, the services and products were needed by the people, whereas transportation faced a complete halt.
But after the un-lockdown phases, the travel industry is making a powerful comeback. After being stuck at their home for months, people are craving to visit places, travel back to their family and friends, accomplish their new year resolutions; which will help the airways, and railways to compensate for the loss they have faced in the year 2020. Boeing, Uber, Airbnb, Delta Air Lines, Penn International are a few of the travel stocks that investors should keep in their pockets.
As mentioned above digital transformation of enterprises and shifting to the cloud are taking the boom, cybersecurity is not an option anymore it is now a basic protocol for organizations to follow if they want to remain agile and safe simultaneously in this digital world. In the last few years, many organizations have seen or suffered the cyber-attack and loss of confidential data that had cost them a huge loss. Hence as the digital world is accelerating the onus of protecting enterprise would fall on cybersecurity firms. That makes it one power magnet for investors to sow their money on.
According to market research done by Grand View Research, the global cybersecurity market is predicted to grow by 10% annually, hitting $326.4 billion in sales by 2027. This may not bag the fastest-growing industry in 2021, or over the next few couples of years, but it has the potential to be the safest floor of any high-growth industry.
What’s next in investing?
The year 2021 can bring uncertainty but considering the current market scenario, it is a feature rather than a bug. Investors have to be ready to expect the unexpected and it is advisable to get comfortable with the volatility roaming in the market. Yes, the risk is the middle name of a savvy investor but playing it safe with a low-cost diversified portfolio and exchange-traded funds can be a smart decision for now.