2020 was a year defined by volatility, and the financial markets were no exception. Stocks rose and fell rapidly as the market sunk to historic lows as well as giddy highs. However, a new year means new investments.
In light of the changing world and hopes for an end to the COVID-19 pandemic, there are clear financial trends already rising in 2021. Savvy investors owe it to themselves to capitalize on these opportunities early on. From commercial real estate to cybersecurity, here are five places you should direct your funds in 2021.
1. Real Estate
The coronavirus turned the real estate market on its head in 2020, causing several booms and busts throughout the year. However, as the world looks towards a hopeful return to normalcy thanks to COVID-19 vaccine development, demand for residential and commercial real estate will likely skyrocket in the near future. Before this inevitable rebound, it’s a smart move to plan ahead by snapping up some properties in growing, high-demand areas while prices are low.
2. Pharmaceutical Companies
Public health was one of the most significant talking points of 2020. Towards the end of the year, the release of various COVID-19 vaccines meant interest in pharmaceutical companies was higher than ever. However, the global vaccine distribution effort is only just beginning, suggesting that these companies will only become more valuable from here on. Companies like Moderna and Pfizer are all the buzz, so you can capitalize on the hype by making investments early.
As the world left in-person offices and transitioned to working from home, cybersecurity became more crucial than ever before. While viruses prey on vulnerable workers performing their duties at their home computers, cybersecurity became a critical initiative to protect sensitive personal and professional information.
Even if most companies return to the office in 2021, the importance of cybersecurity will remain. Organizations have seen how important it is to invest in digital defense, so don’t miss out on that trend. Investments in major cybersecurity firms are sure to pay off.
The travel industry is yet another sector that crumbled during the pandemic, yet there’s hope of a comeback in 2021. As widespread vaccinations allow the world to resume some level of normalcy, companies throughout the travel industry are primed for a rebound.
Airline companies, vacation rentals, and tourism groups are all hoping that 2021 will be a year of explosive growth as cooped-up travelers finally return to globetrotting. You can stay on top of these trends by investing in these companies early on, while stock prices are still low. Then, when the value eventually does rise, you’ll enjoy a significant return on your investment.
5. Cloud Storage
Cloud storage was yet another central talking point that emerged in 2020. Today, it’s more relevant than ever as companies of all sizes rely on technology to stay connected. With so much data being used for even the most mundane activities, cloud storage is an increasingly vital resource for businesses in all industries.
Buying stocks in cloud storage companies is a surefire investment thanks to the projected growth of the industry. Just about every industry needs a robust, data-driven digital presence thanks to the pandemic, so cloud storage presents an enticing opportunity for investors who hop on the trend early.
2020 was a bizarre year, and as investors look ahead with cautious optimism toward 2021, there are plenty of opportunities for financial growth. Don’t miss out on these five places if you’re looking to increase your wealth in 2021.