Every year brings new investment opportunities but 2021 is something more crucial. As it was followed by the most volatile years in the stock market, it not only required strategies to grow in 2021 but also required strategies to recover from the losses we had in 2020. Covid-19 changed the whole scenario of investments and trading all over the world and the investment opportunities are still uncertain in this post covid year.
According to data from S&P Capital IQ, “We potentially could see S&P 500 earnings growth of 25% in 2021, boosted by cost-efficiencies achieved during the pandemic,” It means there’s a lot of opportunity for investments in 2021.
To keep up with the new scenario of investments we need to know the recent trends of the market. And here are the three main post covid investment trends that you need to follow.
1- Technological trends:
The major change that this pandemic brought is switching the whole businesses to online platforms. Different companies have become flexible with the work-from-home trend and there are chances that there will be no switch back to traditional ways of working by a lot of companies at least this year. Due to uncertain conditions of the pandemic, businesses are preferring to stay on the online medium.
According to investment banking analysts, it’s better to work at home rather than having mentors and completing work by night at the office.
And the basic element that supports this work-from-home trend is technology. When other businesses were facing a big crisis, technological companies like Apple and Amazon raised their stocks by more than 75% in 2020. The more technological advances you have the more the chances of your business growth. Therefore, investment in the technological sector can give you a lot of profit in 2021.
2- Age gaps:
In 2021, we can classify investors into two categories: young and old. Both of them have different opinions regarding investments.
Perspectives about the investment market:
Because of Covid-19 young people must have developed an attitude about life, that we would only survive if we didn’t catch the virus. And if we catch the virus, what’s the point of investments? It resulted in lesser chances of investment from young people. The same is the case with old people with a slight difference in perspective. Because of covid a lot of people are unemployed, which diverted their focus more towards savings than investing. These entirely new perspectives about investments have been created in different generations just because of these pandemic conditions. And we are going to see the same trend until the conditions become completely stable.
The reality of the investment market:
The reality is that this pandemic has greatly increased the importance of investments. We need to understand that investments are beneficial for the crisis. In future, If we face any such condition then these investments will be our only financial support. This thing has been proved in 2020 when everybody lost their jobs and faced an extreme crisis in business, only those people were financially stable who had profited from their investments. So it’s good to realize that investment is not spending, it is saving a bigger amount for the future.
3- Flexible and innovative trend:
Businesses or individuals who are innovative and flexible will more successfully navigate a Covid-19 recovery. The challenges we endured in the last year requires creativity to keep up with the world. Therefore we need to bring flexibility and innovation in our investments. Flexibility is the most important factor as launching new services/products, keeping up with the social distancing and reestablishing a new model in these uncertain conditions of the pandemic can get difficult. You might need to remodel your strategies again and again according to the changing conditions of the pandemic.
Another important thing is innovative investments, focus on short term gains to get some long term profits. Some of the best ideas for innovative investment include investing in businesses like food, vape, cryptocurrency, software and the real estate as this year these businesses have a lot of potential to grow.
What can investors do to make their investments better?
The best way to confront all the market challenges is to make your investments align with the recent trends of investment in the market. We need to bring changes according to the requirements of the recent market and make strategies by keeping in mind the possible conditions we can face in the future. It’s important to follow the recent market trends and foresee the possible future conditions to make our 2021 investments profitable.
