3 Investment Trends to Watch for in 2021

The COVID-19 pandemic may finally come to an end in 2021. That is great news for so many reasons, but it’s great news for investors as well. There still is uncertainty as vaccinations roll out, but hope is on the rise. In a year full of possibilities, here are some of the investing trends investors should be aware of.

Recovery Stocks
While the vaccine makers may still be winners, it can be hard to determine if these companies will continue to enjoy their success. More appealing may be the recovery stocks that involve tourism and recreation. Obviously, this is dependent on the COVID-19 vaccines doing their job.

But there are some signs of optimism. That means that airlines and cruise lines, and theme parks may be back on their feet again soon.

Renewable Energy and Electric Vehicles
Solar and wind have increased in popularity, and that will only rise in the years to come. All of the Renewable Energy sector stocks will continue to benefit from the focus on clean energy.

The same can be said for Electric Vehicles. These stocks are hot, and they will only get hotter as more competition enters this sector. That also means there will be an uptick for battery makers and miners who provide the metals for those batteries.

New Financial Technology and Payment Systems
COVID-19 has affected how consumers buy things. The use of cards and smartphone apps to make payments has increased. Consumers likely won’t revert to using cash once the pandemic is abated.

Contactless payments, both through card and through phone, will be in demand. Online shopping will increase, driving demand for better financial technology. Customers are buying everything online, including vehicles and homes. The demand for digital payment systems and e-wallets will only increase as more consumers become comfortable with shopping online for anything.

The world will be watching to see where 2021 leads. While there may be other trends, such as in robotics and cybersecurity, hopes are high that the recovery from COVID-19 will trend toward a brighter future.

Originally posted on andrewcosta.org.