Where should you place your money in 2021?
With the Pandemic and Brexit – two seismic concerns for the UK in 2021(albeit the latter isn’t as large as it appears) – things have been a little busy recently. There is, however, still time…
The United Kingdom entered a recession in August. In April of this year, the FTSE 100, on the other hand, was up 17% year over year. It’s been a rollercoaster ride on a global scale, with ups and downs on a daily basis.
Thankfully, coronavirus vaccinations have aided in the re-start and recovery of economies. The new American presidency is another bright ray on the horizon. There should be no more unpleasant surprises (albeit his rapid troop withdrawal from Afghanistan hasn’t helped him in the international arena).
Nonetheless, it appears like the world is returning to some form of normalcy. So, with this in mind, where should you put your money this year? Here are a few of the more attractive sectors and industries to consider:
Technology
Where would we have been in the last year or so if we didn’t have the ability to Zoom? Working from home and holding meetings with colleagues and clients would have been significantly more difficult without the technological wizardry of Zoom or Teams. Zoom has progressed to the point that, like Google, it has become a verb.
It wasn’t all labour – or even fun – either. No, we did some online buying as well. Massively. We didn’t have any other option when the actual businesses closed. Wasn’t that a piece of cake for us?
Despite businesses reopening their doors, 17.2 million people in the UK (almost a quarter of the population) believe they will continue to shop online, according to research firm Alvarez & Marsal and
Retail Economics.
Where to put your money: It appears that cloud computing and online commerce are where the big bucks are. Consumer electronics will sell well, according to analysts, because we’ll need devices to get online. Long-term investing strategies should also involve companies that specialise in artificial intelligence and software development.
Integrity in investing
Climate change is a huge issue right now, as we all know. The financial community has taken notice of this. In reality, in recent years, the ‘desire to do right by the world’ has become big business. In the strictest sense of the word.
There are a plethora of “ethical” funds to pick from these days. Green Savings Bonds were created by the government to encourage people to save for the environment. Then there’s the United Nations Climate Change Conference (COP26), which will take place in Glasgow in November and will be watched by the entire world. The Paris Agreement has also been accepted by the United States.
Ethical investing, on the other hand, comprises more than merely combating climate change and lowering carbon emissions, as well as maintaining rain forests and other natural resources. Some of the umbrella terms used to define it include socially responsible investment (SRI), environmental, social, and governance (ESG), impact investing, and sustainable investing.
Between June 2019 and June 2020, investment into ethical and ESG funds surged by 50%, according to financial portal Hargreaves Lansdown. Traditional major hitters like airlines and oil companies have underperformed, which hasn’t gone ignored. They will, of course, recover in time, but they do not yet fit within the ESG umbrella. These companies could – and probably certainly will — pursue sustainable hints in the future if they want to continue to attract investors and maintain major shareholders.
Cryptocurrency
Most of us are familiar with Bitcoin, a type of cryptocurrency which has grown in popularity in 2021. It’s a type of ‘digital asset’ that works similarly to currency. It exists to “cut out the middle man,” i.e. the banks and other lending institutions that take such a big cut from all of our financial transactions.
There are, of course, other cryptocurrencies available. Bitcoin, on the other hand, is the most well-known of them all. Even US billionaire Elon Musk got in on the act – until he didn’t. The stock price plunged after he backed out. But it’s back up and running now.
For the uninitiated, currency is acquired in units. And, while returning an incredible 525 percent to investors last year, it remains a bit pricey to buy. There’s no reason why the price can’t drop even if Elon Musk isn’t involved. These high-earning equities are more common in tumultuous markets, and cryptocurrency is unquestionably one of them right now.
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Do you want to know where the smart money will be spending its money for the rest of 2021? Continue reading our blog, and if you require a Medallion Signature Guarantee, please contact us. We’d be more than happy to help.