2020 had been an extremely bad year for investors as the Covid19 pandemic crushed the global economy and battered the stock markets like never before. The unprecedented shocks that the markets experienced appeared to spell doom for investors. But luckily, after withstanding the initial tremors with some patience and perseverance, most investors could navigate the choppy waters of the year gone by and are now daring to be optimistic as the global markets are rebounding fast, observes Paul Haarman.
With vaccines rolling out globally and vaccination gathering pace, the days of lockdowns are now a thing of the past as economic activities are fast gaining normalcy. Investors are looking forward to good days ahead, leaving behind the Brexit uncertainty and with US politics raising hopes of a more conventional presidency under Joe Biden. There is positivity in the air. This article will discuss the emerging trends that should give investors more investment choices by identifying the areas that hold high promise. He identifies three reasons for raising the spirits of investors.
Create a more diversified portfolio by investing in ESG, advises Paul Haarman
Since June 2020, the flow of money to environmental, social, and corporate governance (ESG) funds has doubled compared to the same period of the previous year, perhaps because of the lessons learned from the pandemic that generated more interest in investing in diversified portfolios. As most investors fear a repeat of the pandemic experience sometime soon unless there is a considerable reduction in carbon emissions, the trend of investing in more sustainable ventures by turning away from crude oil is fast gathering pace. The welfare of the planet will be in focus in people’s minds as the political activities revolve around it. The poor performance of oil and airline stocks proves investors are ready to invest in eco-friendly and sustainable ventures.
Thrust on technology
According to Paul Haarman, the life-changing impact of technology during the Covid19 pandemic that ushered in a new era of work from home and boosted online shopping have created new technology-driven structures which are likely to become permanent features of our future lives. The surge in online sales and the unprecedented use of video conferencing apps like Zoom are likely to shape our lives in the coming days as the interest in bringing employees to the office is waning fast.
The pandemic proved the high worth of businesses that embraced modern technology and kept our lives moving forward by maintaining the supply chains online as well as socializing and working online. From online food delivery to the flourishing OTT platforms for movies and recreation, it is time to invest in technology companies that would support the new lifestyle emerging after the pandemic.
The craze for cryptocurrency is increasing, and leaving aside the debate about its prospects of turning into the currency of the future, investors with a high-risk appetite still consider it as the golden ticket to Wall Street. Choose from the range of cryptocurrencies that are now available by considering your level of risk tolerance.
Investing time to gather knowledge about digital currency is a must before you invest your money in it.