Look at These Emerging Trends For Investment Ideas For Next Year

• Author: Bryan Miller
• Posted: 2024-07-16

Even if you don't stay up to date with finance, you likely are aware that the COVID-19 pandemic sent markets into a tailspin. With so many jobs lost and people in despair, every major index crashed. Some people panic-sold their stock and lost huge sums of money. Others "rode the wave" and ultimately saw record gains as of last week.

Now, there are more investment options than ever. A field that used to be reserved for professionals is now open to anyone with an Internet connection. You can even take advantage of "robo-advisers", which are tools created with artificial intelligence who can help you bet on the right mutual funds and stocks.

Let's take a look at market trends beginning to form. Keep in mind this is not investment advice; it is simply a take on market conditions and thoughts on where it will move next.

Cannabis, Cannabis, Cannabis

After COVID hit, many states who rely on income tax were left with huge deficits. Some states chose to add new taxes, while others looked at more novel approaches. 2020's election had a clear winner: cannabis. Even deep-red South Dakota voted to approve the legalization of cannabis for adults.

This is in addition to a huge slew of cannabis wins during midterm elections. Although politicians in these deep-red states are trying to fight back against referenda in some cases, they typically are not able to overturn them. Deep-red states that don't have a referendum process in place but who are in desperate need of money are even looking at cannabis.

This is because cannabis remains the only Schedule I drug that has never caused a death. A study by the UK's Home Office indicated that personal and social harm of cannabis use over time did occur; however, the degree of it was far less than that of alcohol. Therefore, a common rationalization for cannabis legalization by states is that alcohol is legal for adult consumption and is far more dangerous, so why not tap a potential revenue source that could fix their budget woes?

2021 won't have many big elections, but it will have lots of local policy decisions made on cannabis. For example, states will be announcing which contractors won dispensary permits, estimated revenue, etc. Historically, since Colorado became the first state to fully legalize the substance in 2012, this is when cannabis stocks go up.

Cryptocurrency

Several years ago, almost nobody knew what "Bitcoin" meant. It was often sold for amounts hovering around $20 and casually traded. It fluctuates greatly in value, but it is reliably several thousand dollars per Bitcoin now.

While Bitcoin will hit its market cap in the near future, other cryptocurrencies are just taking off. Make sure that you put aside some time to investigate your cryptocurrency investment opportunities. These can come in two forms: you may buy the actual currency, or you may invest in a mutual fund that is based on their values.

Media Companies

With the exception of cable news networks and network television, media companies' stocks have, for the most part, been booming since COVID hit. TV stations observed many more viewers than before, and many websites counted record numbers of visitors.

Now that people have seen just how much can be done digitally when some processes were legally required to be digital, it would be hard to take this option away. Even after a COVID-19 vaccine comes out, chances are that people will expect at least the same conveniences they were offered before.

Essentially anything "remote" goes through a media intermediary. For example, most web traffic at some level goes through Microsoft Azure, Google Cloud, or Amazon Web Services. Take a look at these stock offerings and their recent performance to judge whether they might be a good bet for 2021.

Always Consult an Adviser

While investing can be a lot of fun, losing all of your money is not! That's why it's critical to schedule an appointment with a financial adviser who can help guide you to specific funds and stocks. They will have the insider knowledge required to get a foothold, and they'll know the type of account you should create for maximum tax benefits.

Of course, advisers do cost money. If you're short on cash and want to start small, take a look at apps available for your phone that specialize in automated investment advising and start experimenting with small amounts.