For majority of us, 2020 has undoubtedly been a year to forget. However, with the administering of the COVID-19 vaccines globally, things are taking a favorable turn. With the interest of laying a framework for a more prosperous 2021, we’ve gathered some lucrative advice for the savers and investors all over the world.
In spite of the current record levels of the stock market, a Professor of Finance, Jeremy Siegal at the Wharton School of the University of Pennsylvania predicted that good times are all set to come in 2021. There has been lot of repressed and subdued spending. According to him, money is ready within the account waiting to be spent. Siegel says that this sharp hike in supply of money will benefit the market as a whole.
A look at the hotel industry post-pandemic
The specific sectors that suffered from a jolt due to the pandemic and those which suffered closures are the ones where investment returns and recovery will be much greater. For instance, hotel industry, leisure and travel industry stocks are still down by 40%. Nevertheless, Siegal believes that everyone who couldn’t visit Disney in 2020 is sure to visit in 2021.
Turnaround investors who are looking forward to invest in the most serious casualties of this pandemic may consider Invesco Dynamic Leisure and Entertainment ETF, a fund that is home to a diverse group of big shots like Hilton, Disney, Sysco, TripAdvisor, Brinker International and Live Nation. Hotels are also at bargain prices. In fact, the strongest among the real estate and hotel industry is APLE or Apple Hospitality REIT that owns 235 upscale hotels in 35 states.
The importance of digital transformation amidst the pandemic
Digital transformation has undoubtedly been the biggest and most investable tech trend of today’s generation, as compared with that of our grand-parents. During the pandemic, the utmost need of this transformation was laid bare. As consumers and workers were all holed up inside their homes, online shopping carts, virtualized meetings and online streaming media kept the economy from drowning into depression. These trends are here to stay!
This clearly implies that the long term investors should make sure their investment portfolio has a proper dose of the companies that are involved in disruptive vehicles like genomics, autonomous vehicles, 5G, big data, robotics, artificial intelligence and targeted cancer therapeutics. Thankfully, few of the biggest members of the S&P 500, Google, Amazon, Visa, Microsoft, Verizon and Pfizer are all knee deep into the these edgy innovations.
For all those who wish to get a concentrated approach to big-shot companies, there are several mutual funds and ETFs. One of them is actively managed Ark Innovation ETF. The mission is to invest in companies that offer new services and products that alter the way in which the world works. In case you’re already retired, this is high time you take a fresh look at your portfolio. Choose to start off with side gigs or you can even think of starting your own business to keep a constant supply of income in your retirement years.
Stay away from creating a bond-heavy portfolio as this might not be your cup of tea, especially if you’re retired. Hold on more to stocks but keep hedging risk. For all other professional support, seek help of a financial analyst.
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