Stocks are a common way to grow your savings and make your money work for you. When it comes to investing in stocks, many people will think of the common sectors like real estate, construction, banking, and finance. Here are a few sectors you may want to look into as a stocks investor in 2021, including some that are often overlooked.
1. Communications Services
Communication is a fundamental pillar in both the business and social worlds. Over time, communication companies performed very well in the global stock market. For example, while Facebook may identify as a tech company, it is a giant in the communication services market. Apart from Facebook and social media platforms, telecom stocks from communication companies like AT&T, Verizon, and Comcast are worth looking into for substantial returns.
2. Online Retail
While the COVID-19 pandemic might have hurt a few online retailers, there was a massive boom in e-commerce sales by the end of 2020. Most people spent more of their money on electronic gadgets, home improvement products, and items that could help make their homes more comfortable. To date, people are shopping online more than ever before.
Any wise investor would be curious to look into online retail stocks. According to Timothy Green from the Motley Fool, Amazon, Home Depot, Walmart, Ultra Beauty, and Wayfair are among the most profitable stocks out there. There are tons of other publicly traded retailers that you can consider with some research.
3. Tech Stocks
When we speak of the best performing sectors in the global market, software and information technology are not to be forgotten. Some of the largest companies by market capitalization around the globe belong to this sector.
From Microsoft Corporation to Apple Inc, Intel, Hp, and CommScope Holding, you will never run out of options when looking to invest in tech stocks with decent gains for your money.
4. Energy
The energy industry is also picking up speed in 2021 as the world strives to pave a better infrastructure for clean and eco-friendly energy options. The global energy demand is on the rise, so you can expect the stocks to fetch something good for keen investors. In the U.S., the likes of Kinder Morgan and Energy Transfer can be great places for investors to look. The Canadian Natural Resources was also cited to be among the top performers in this rather undervalued market.
5. Mining
From the extraction of rare and precious metals like gold, platinum, and silver, to the commonly used ones like copper, iron, and zinc, a lot goes on in the mining sector. Stocks from some of the largest mining companies can also have decent returns.
Zinc mines are specifically quite marketable because a good number of them uphold the environmental protection requirements. Don’t forget the huge importance of zinc in galvanizing other mental and preventing rusting among other uses. This makes zinc stocks a great commodity to consider as an investor.
Nothing is more fulfilling than having a financial nest egg despite the common hassles of life. It comes in handy in the future when you need it the most, and you can even retire comfortably when you get older. As you consider investing in real estate, healthcare, and other popular types of stocks, the above sectors are worth keeping an eye on.
