Despite popular belief, 2020 turned out to be a pretty decent year for investors. It may not have been entirely smooth sailing, but the S&P 500 when up 16% in the previous 365-day calendar period. For the uninformed, that is an index that displays the stock market’s performance by posting the returns/risks of the 500 large-cap US companies. Investors use it as a meter to gauge the overall market. It dropped 30% in March of last year, but quickly rallied from these lows and slowly went up until December.
Now, financial experts are predicting another challenging year for investors, as the global pandemic will surely last throughout 2021. All forecasts are contingent on how global economies will bounce back from the ongoing crisis. Those in the know suggest focusing on long-haul investment strategies instead of gambling on what should happen in the short term. Most investors are also looking to take advantage of rebounding industries, like air travel and hospitality, and those surging on account of the pandemic, such as cloud computing.
Nevertheless, before buying any stocks, everyone should build up an emergency fund and be wary when betting on trends. Traditionally cyclical economic businesses remain the most stable investment options. However, with that in mind, here are five sectors that unquestionably are worth considering as we exit the pandemic.
Given what transpired in 2020, buying stocks of companies that operate in the healthcare sphere seems like a no-brainer. Particularly those that offer digital health products, which were nothing more than mere novelties before the events of 2020 occurred. The term digital health encompasses categories like telehealth, personalized medicine, wearable devices, and health information technology. Products in this category can range from mobile apps to digital tools that accurately diagnose diseases from home. When it comes to the latter, the FDA has provided approval from many such devices, and it is currently exploring the capabilities of others. According to a report published by Facts and Factors, the global digital health market should reach $220 billion by 2026.
Betting on sports and games of chance over the internet has been around since the mid-1990s. While this industry has maintained an upwards trajectory, its expansion rate significantly swelled after the invention of the smartphone and once internet mobile use became widely adopted. Now, projections put this sector on course to bring $158 billion in annual revenues by 2028. One of the reasons this will likely happen is that governments are now loosening their stances regarding gambling regulation because they need new tax revenues. These moves have caused the top online casino platforms in the USA to grow substantially.
AI-powered products have been the emerging industry of this past decade. This technology has already spread into business operations and society, and such a tendency will not stop soon as this sector continues to branch off into other industries. Self-driving cars are now a thing, with more than 1,400 of these sort of vehicles currently roaming US roads, and AI-assistants have become standard items in many homes. Despite last year’s economic downturn, 27% of AI investors reported that they increased their investments in this sector in 2020. Projections are now that the global artificial intelligence market should hit $266 billion by 2027.
Data analytics software scours vast sets of raw information, searching for hidden patterns and correlations. Such technology analyzes massive data to produce answers that can improve companies’ business practices. The results attained from these algorithms can lead to more informed decision-making, cost reduction, tailoring services and goods based on customer feedback, and more. The global leaders in this field are IBM, Microsoft, Oracle, Tableau Software, Amazon Web Services, SiSense, Zoho Corp, Looker Data Sciences, Dell, and Mu Sigma. Per recent market research, this sphere will keep growing at an annual rate of 26% in the next six years.
Though not glamorous, the construction equipment industry has traditionally maintained, marking slow but steady growth throughout past decades. That should continue in this one due to governments commissioning massive stimulus plans, which will most certainly help this sector, particularly in countries like the US. Construction should massively pick up in 2021, with interest substantially rising for heavy construction equipment rentals. Even without this spike, this sphere is a safe bet for continuous growth. Estimates say that it should keep swelling at an annual pace of 4.7% until 2025. The stabilization of the Chinese and Indian markets is of massive interest to this industry, as they hold the largest potential for growth.
Investing is never a sure thing. Emerging markets are alluring but are also very volatile. It is of paramount importance that everyone does their research to ensure that the industry they are pouring money into has staying power. Established fields aren’t as exciting, but they contribute to more sleep at night.
About the Author
Shelly Schiff has been working in the gambling industry since 2009, mainly on the digital side of things, employed by OnlineUnitedStatesCasinos.com. However, over her eleven-year career, Shelly has provided content for many other top interactive gaming websites. She knows all there is to know about slots and has in-depth knowledge of the most popular table games. Her golden retriever Garry occupies most of her leisure time. Though, when she can, she loves reading Jim Thompson-like crime novels.