2021 is a great year for equities and global stock markets as they bounce back from the economic pressures of Covid19. To future-proof your portfolio we will assess some sectors that are ready to take-off and provide above-market gains in 2021.
- iGaming Stocks
iGaming is one of the hottest markets globally at this time. Gambling online has never been more prevalent than it is now with slotxo games leading the way. There are some big names to invest in mostly on the Ney York Stock Exchange (NYSE), London Stock Exchange (LSE), and also the NADAQ Stockholm. Look out for brands like Playtech, Entain, Flutter, LeoVegas, Evolution, MGM, and Caesars Entertainment. These brands are all involved in the iGaming industry and have all seen their stock process continually rise over the past 2 years thanks to divisions that focus on online gambling in both iGaming and sports betting.
- Artificial Intelligence
Since 2020, companies have made sizeable investments in AI technology. A Gartner report shows that 30% of companies increased their AI investment in the last 12 months versus only 7% of companies which decreased spend (source: Gartner Intelligence Report. Artificial intelligence is helping companies achieve economies in many areas, most vitally in areas where tasks are resource heavy. AI can improve processes to allow human operators to work more efficiently and to automate processes that are more repetitive or time-consuming, for example, data mining or monitoring of transactions.
Sales companies are using AI to help their teams analyze customers and prospects, the technology can help find leads and evaluate the performance of sales staff from their activity and deal records. Hence why companies see investment in the technology as a positive cost that will reap efficiencies. Likewise having AI stocks in your portfolio will help you ride the wave of its growth and adoption in the corporate world.
Bitcoin is the daddy of crypto for its store of wealth but Ethereum the 2nd largest cryptocurrency has become the defacto infrastructure for crypto. It’s the most widely used blockchain for transactions, building decentralized applications (DAPPS), games and contracts. Hence its price has outpaced Bitcoin by 3 times in the 12 months from July of 2020. Bitcoin is widely accepted by big and small retailers as a form of payment but Ethereum also is accepted by companies such as Microsoft, Overstock and even Sotheby’s Auction House. You should hold some Bitcoin but also make sure you have a percentage of your portfolio in Ethereum.
- Space Travel.
If you fancy a trip into space to view the earth from afar or the moon closer up then the companies pioneering the retail space race are key stocks you should have in your portfolio. Funnily they are all headed up by some of the most successful entrepreneurs of our generation. Elon Musk made billions from Tesla and Bitcoin and has invested heavily in SpaceX, it is yet to trade publicly but its offshoot SpaceX Starlink which launches satellites for broadband is set to IPO and according to the company has an order book for 500,000 customers already.
Jeff Bezos the king of online retail has used his Amazon wealth to build Blue Origin and the crazy Virgin chief Richard Branson has led Virgin Galactic to several successful flight tests. Virgin Galactic recently won approval for manned space tourism and its shares pumped 50% in 2 days. This is the excitement behind space travel for the average man. Well not so average as tickets cost 1m but at least you don’t have to have a MENSA score of 200 or train as an astronaut for 20 years to get the chance to go interplanetary.
- E-Commerce Platforms.
The big beneficiaries of lockdown have been the food delivery companies, UberEATS, Deliveroo, FoodPanda and Grab. Whilst restaurants have been closed to diners, they have had to pivot to take-out and delivery and the aggregators like FoodPanda, Gojek and Grab have facilitated the massive growth in food purchases online. Gojek Thailand has just received investment from AirAsia to integrate it into its Super APP and UberEATS is now the best performing department of parent company Uber.
These companies are what we call aggregators and their model is bringing an array of products and merchants to their customers. They have no inventory risk or production so their margins can be very healthy, often they pump all sales into marketing to grow their market share with the long-term view of increasing their valuation.
These technologies are all trending now, as with any new technology the longevity may be fleeting but as companies have shown they are pretty positive about their application and future. By adding related stocks to your portfolio, you may be able to benefit from some of their growth before they hit it big or burst their bubble.