The finish line has finally come into view. In 17 days, the curtains will close in 2020 (thankfully) and we expect a bright year in 2021.
The same is true for the investment community. Although S&P500 This year is on track to deliver a double-digit gain, which is nothing more than smooth sailing. The coming year Corona virus disease 2019 (COVID-19) vaccines, federal stimulus dollar employment and the stability of historically low interest rates should be included. This is a perfect scenario for stocks to thrive under a new president.
Nonetheless, throwing a dart at the newspaper’s financial section is not a great strategy for getting involved. If you want to build any serious bank in 2021, you should take $ 1,000 and seriously consider working on these five unstoppable trends.
Image Source: Getty Images.
1. American Marijuana
If you do not pay attention, North American marijuana stocks will burn hot all year round. But when given a choice, US pot stocks have a significantly larger market at their disposal, with very few constraints.
Federal cannabis is unlikely to be legalized in the United States before 2023 (less than the Democrats who won the Georgia Senate run in January), and state-wide legalization is accumulating. U.S. cannabis stocks are not standing in the way too much, signaling that the federal government will take an approach to state-level regulation.
For example, Green thumb industries (OTC: GTBIF) 2021 should be very profitable on a full year basis. Green Thumb has 50 active pharmacies, but has licenses to open up to 96 in a dozen states. In particular, Green Thumb has chosen to focus on Nevada, which is set to lead the country in personal cannabis spending by the middle of the decade, with the billion-dollar market Illinois, 2020, waving the green flag at adult sales on January 1st.
Image Source: Getty Images.
2. Cyber security
One of the many things we learned in 2020 is that cyber security is not an option. Rather, it is a basic need service that should advance businesses of all sizes. As the world becomes more digital, the responsibility for protecting corporate and consumer data falls on cyber security companies.
According to Grand View Research, the global cyber security market is projected to grow by 10% annually, reaching $ 326.4 billion in sales by 2027. It should not be the fastest growing industry in 2021, or in the next two years; But it also has the safe base of any highly developed industry.
Here is a name that excites me the most Credit Strike Holdings (Nasdaq: CRWT). CrowdStrike’s cloud-native Balkan platform is cheaper than security solutions on campus, and is responsible for tracking 3 trillion events per week. Recently, the company announced that 61% of its customers now have four or more cloud module subscriptions, up from 27% three years ago. Consider any significant setback buying opportunity.
Image Source: Getty Images.
3. Customized / Precise Medication
Even if successful vaccines stop the epidemic by 2021, it is clear that health services designed to personalize treatment and improve comfort will be hot for the foreseeable future.
Although estimates on Wall Street vary, most researchers are calling for 10% to 12% of global precision drug development annually over the next five to seven years. Again, not a fast growing industry, but one with an exceptionally secure platform.
Take a quick look at Telemedicine’s operating performance Telatoc Health (NYSE: TDOC) The precise medication trend shows just how powerful and consistent it can be. During the COVID-19 crisis, Teletock has seen more than three times as many virtual arrivals as in the previous year. However, sales increased by a combined annualized rate of 74% between 2013 and 2019. With the acquisition of Deletok utility health signals company Livongo Health in a cash-and-mortgage deal, patients with chronic illnesses can now be remotely monitored, connected to patients almost entirely by physicians, and its products easily cross-promoted.
Image Source: Getty Images.
4. Cloud infrastructure
Another great way to put $ 1,000 to work in 2021 is to invest in cloud infrastructure stocks. I have no doubt that all aspects of the cloud are going to continue to see cash flow next year. But in the wake of the epidemic, businesses have realized how important it is to have an online presence and how important data sharing and remote work can be. That’s why cloud construction blocks will be such a hot topic next year.
Last year, ITC released a five-year forecast on public cloud service and infrastructure growth, which required a combined annual growth rate (CAGR) of 22.3% between 2019 and 2023. In particular, infrastructure-a-service stocks are expected to be the fastest growing trend in the cloud (32% CAGR.)
Although Amazon Clear market share leader in cloud infrastructure services, that is letters (Nasdaq: GOOG)(Nasdaq: GOOGL) It may provide better growth potential. Alphabet’s Google Cloud is growing much faster than Amazon Web Services. Google Cloud generates a significant amount of margins for Alphabet over its ad-based revenue. Over time, these juices need to actively expand its operating cash flow.
Image Source: Getty Images.
5. Gold miners
You should not think that gold stocks are unstoppable, but in 2021 they could shock Wall Street hard. More than $ 17 trillion in global investment-grade debt has a negative yield and the central bank has unleashed an unlimited amount of easing to support the US financial markets, creating the perfect environment for physical gold to shine.
At the same time, we have seen gold miners over the past five to seven years focus on mines that provide higher yields by selling non-assets by reducing their net debt. As for the price of physical gold spikes, gold stocks have been enjoying their best financial position for a long time.
Yaman Gold (NYSE: AUY) A name that should be the primary beneficiary of high gold prices. Despite pinging Zero Moro online and increasing production at its Canadian Maldives mine, Yemen has reduced its net debt over the past five years, where it holds a 50% stake. Yemen’s operating cash flow is expected to be high by 2021 as its gold-equivalent ounce production will grow by double digits to more than 1 million.