The year of 2020 was a turbulent one in various aspects, the world faced an unprecedented crisis in modern times with Covid-19, the pandemic had a deep impact in the lives of everyone and business worldwide.
The beginning of the year when lockdowns started being implemented made more cautious investors sell their stocks which resulted in the dip in values seen in March. Anyone that sold their stocks back in March probably ended up losing money because since then most stocks have recovered and ended up gaining value in 2020. If we can take anything from this year is that the investment market is almost always unpredictable and focusing on short term gains can be misleading. Sticking to a diverse portfolio with focus on long term profits is the safest way to go into 2021.
If you’re looking through personal investment blogs you are likely looking forward to the world of investment in 2021 and that’s why taking a look at 2020 is so important. In 2020 we saw how unpredictable the stock market can be, but we also saw trends that are likely to continue for 2021, let’s take a look at some of those trends.
The Healthcare Industry
The obvious areas that will see prominence 2021 are healthcare related and adjacent areas. The main focus of 2020 was healthcare. The obvious companies to look out for in the next year are the ones directly involved with the vaccines being administered worldwide like Pfizer. The less obvious ones are the industries related, but not directly involved with the production of the vaccines, for example the Oxford vaccine needs to be kept at below freezing temperatures, so companies that not only sell the equipment suited for the task will see a rise in value, also companies that are able to transport these vaccines in these specific conditions will probably see a raise in business and value as the distribution rollout continues.
The Year of Online Services
We will likely will see a gradual normalization in the way we do business and live our lives in 2021, but how business are conducted and how we operate may never be the same after 2020. There was a great rise in E-commerce in 2020, and even if the growth is slowed down it is doubtful if the trend will be reversed, as more and more people grow accustomed to the practicality and ease of use of online shopping the market is likely to grow, and the year of 2021 is more likely to further this growth with the return of buying power to a lot a people.
The investment market had a big rise in the second part of 2021 and this trend is likely to continue in 2021, it is important to remember that focusing on long term gains will work better than trying to invest briefly in too many options. As we saw in 2020 it is important to keep an eye out to changes but not being too fast to react to them, keep faith in diverse investments, and stay tuned to news outlets and personal investment blogs to know what’s happening with your personal investments.