The stock market is in a constant state of flux. This is the entire principle that it turns on and is the very reason opportunities for profit exist. To do well in the world of investing, one must possess a degree of foresight – or, at the very least, sufficient knowledge to predict what’s likely to happen next.
How do you do this? How it is possible to guess what the future holds when there are so many different factors driving market movement? The answer is that you need to pay attention. One thing to remember is that you’re not the only person trading the markets; others are doing it too, and some of them are a lot better at it than you.
Luckily, these trendsetters are often willing to share their insights with the rest of us mere mortals. This is how patterns are formed. Here are a few to look out for in 2021 if you’re hoping to add real value to your portfolio.
Ethical investing is in vogue
The world around us is changing. There’s no denying that we’re becoming more socially aware, and that means we’re increasingly adopting a new ethos. As a result, our priorities are shifting, and this is reflected in the turn towards ethical investing.
It’s not only the younger generation who’ve been inspired by the words of environmental activists like Greta Thunberg and David Attenborough; so too have investors, who are increasingly embracing green investment strategies.
This is illustrated by the growth of ethical and ESG (environmental, social, and corporate governance) funds, both of which doubled in the space of a year in 2020. With the increasing public focus on carbon emissions and other harmful eco practices, this is a trend that’s set to continue for the foreseeable future.
Recent advances make tech one of the hottest sectors
In 2020 and 2021, we have seen a huge shift in the way we work, shop, and live our lives. More and more, we’re turning to the virtual over the real, with remote working and online retail reigning supreme. This means we’re increasingly reliant on technology, and tech firms have risen to the challenge. As a result, several tech companies, including Tesla and NVIDIA are rated as some of the top shares to buy now, according to sites such as BuyShares. Performing a monthly stock market analysis, they offer an in-depth rundown of the most promising options.
For this reason, sectors associated with digital transformation are among those to watch in 2021, with online retail, cloud computing, and more being safe bets for anyone looking to expand their portfolio.
Digital entertainment is in demand
Another major lifestyle change in the last couple of years has been the increasing shift toward digital entertainment. As traditional television has seen a decline in popularity, streaming platforms like Netflix and Amazon Prime have surged.
This is evidenced by the figures, with traditional TV viewership having fallen by 16 percent in 2020, while Netflix saw 37 million new signups in the same period. What this tells us is that traditional forms of media are approaching their nadir, and their successor has already been crowned.
For investors, this means that digital entertainment makes for another great addition to stale and/or stagnating portfolios.
Why not take advantage of these trends today?
