Daniel Kibel, co-founder of CM Trading, discusses five industries that may perform in the year ahead.
“During the Covid crisis, we’ve seen a major increase in online trading. And while 2021 is well underway, it’s likely we’ll still see a few lingering effects of 2020 in the markets.
“One of the main take-outs from 2020 was major volatility on oil. That was a huge trading opportunity in terms of ‘going long’, selling and buying,” he said.
Gold performed well in 2020 and has historically been a safe place for traders.
“It’s where they go when they’re concerned about what’s going on in the world. That said, there is a rising trend of traders moving to Bitcoin instead of gold.
“For the most part, though, the whole stock market was dragged up by just a few stocks last year. And some of them may still be worth watching in 2021.” Kibel said.
Kibel outlines 5 stocks on his watch-list for the year:
Lockdown has been an obvious winner for Amazon. With people all over the world forced to stay at home and unable to shop in person, a boom in online shopping was a natural conclusion.
And Amazon performs in terms of service, price and quality delivery, which really helped their case. Shopping has changed forever due to Covid -19.
And because of the convenience factor, online shopping is probably going to continue to do exceptionally well, even beyond the pandemic. Plus, we aren’t quite out of the woods yet, as vaccines roll out in phases globally. So, it still makes absolute sense to shop from home.
“Tesla stocks absolutely flew through the roof by around 400% in 2020. With several countries set to phase out fossil fuels, Elon Musk’s vision of having electric cars take over the roads is set to become a reality.
And January saw a further surge in value. In 2020, Tesla achieved its target of producing 500,000 vehicles. And production shows no signs of slowing down, with worldwide expansion in the works.
Electric vehicles will soon be the way of the future – by law. That bodes very well for the world’s top electric vehicle manufacturer.
“As online activity increased, so did the value of Google Stock. More people online meant more advertising activity. So, Google’s ad revenue surged. And as Google’s main source of income, this had a very positive effect on their shares.
Google hasn’t only performed well during lockdown, it is one of the most successful stocks of the 21st century. The company is also constantly investing in value-added apps and systems, like cloud storage and mobile technology.
For now, Google still looks to be a stock that’s on the move.
“The iPhone remains the biggest money-spinner for the tech giant. And stocks flew due to the launch of the new 5G iPhones late last year. The associated services business provided by Apple to a billion iPhone users is also attracting major investment.
And while their streaming service may have been met with a lukewarm reception by viewers, Apple’s mobile division still accounts for around 44% of their total revenue. And much like Google, the company remains ahead of the pack when it comes to investing in new technology.
“Every trader needs a wild card. And this is it. As vaccines roll out globally and a semblance of ‘normal’ begins to return, we may well see oil prices rise. With air travel and business beginning to revert to what it was before, oil will be back in demand.
It is all very tied to the dollar’s performance, though – as are most major commodities.
Nonetheless, if I was a gambling man (which I am not), I would say that oil is one to look out for in 2021. By the same token, as things do normalise, we may see the gold price falling.