2021 will be full of surprises as stock markets come back with economies coming back. If you are a stock investor, looking for stock market trends, here is a certain technical analysis of stock trends to watch this year. These trends will help you identify where to invest.
Stock Market Trends 2021
The stock market has entered 2021 with certain favorable trends. These are:
Successful Investment Sector Impact
With Joe Biden coming in as the President of the United States of America and his plans to raise taxes on the wealthy, the impact on stock markets will be great. It will bring in more money in the markets and this will have a positive trickle down impact on many sectors.
Furthermore, with Covid-19 vaccines being distributed this year, things will start coming back to normal. This means that the dispersed money in the stock markets will find their way to the fuller circles, bringing stock markets back to normalcy. After that, we can observe upward trends in the markets. This could also mean the comeback of small to mid-sized businesses and the comeback of consumer businesses as well. It is better to watch stocks that belong to these categories more and most importantly.
With such widespread changes this year and the possible successful rollout of the Covid-19 vaccine, it is expected that every single investment sector may make a comeback this year.
Rise In Pharmaceutical Stocks
There will also be a rise in pharmaceutical stocks after the roll out of Covid-19 vaccines this year. Public companies involved in this sector will also benefit greatly. There will be certain obvious winners including Pfizer (PFE), Regeneron (REGN) and Moderna (MRNA).
Other pharmaceutics to watch this year are BIIB (Biogen Inc.), HZNP (Horizon Therapeutics PLC) and IMCC (IM Cannabis Corp.) which offer top value for growth and momentum both.
Higher Demand For Travel/Restaurant Stocks
Travel stocks are also expected to rise in 2021. By this we mean airline stocks, cruise lines and hotels. All three will benefit with travel opening after a rough 2019-2020.
Technical analyses of stock trends reveal that restaurant stocks will also benefit this year. This is because fast casual restaurant chains will have a lot to offer after things restore to normal. In fact, after the day Pfizer announced its vaccine, there was a widespread rally amongst chain restaurants and literally in every cuisine. Restaurant stocks that have already benefited are Darden (DRI), Ruth’s Chris Hospitality Group (RUTH), Denny’s (DENN), Cheesecake Factory (CAKE) and many others. These restaurant stocks will offer a great opportunity for investment this year.
Decline In Tech Stocks
Finally, another one of the ‘stock market trends 2021’ is the possible slowing down of tech stocks. Tech stocks had an excellent 2020 but it was more of a bubble because of the corona pandemic which had literally everything shutdown. With things coming back to normal, travel, normal meetups and others will reduce the need to use technology and will lead to a drop in tech stocks.
Since October 2019 to date, things have been very shaky because of the corona pandemic. However, following 2021 and with the spread of Covid-19 vaccines, things will start to improve. If you are an investor looking to invest, the aforementioned trends should be watched clearly.
