Hashtag Investing

The United States has been making a V-shaped recovery since the last quarter of 2020, with rising GDP and consumer spending and declining unemployment. The country’s recovery rate is just behind China, as US GDP increased at an annualized rate of 1.6% in the first quarter of 2021 (ended March). In comparison, the European region witnessed a double-dip recession in the first three months of 2020, as the Euro Zone GDP shrunk by 0.6% over this period.

2021 marks the second year of an extended bull run, with hopes of robust stimulus policies and vaccine disbursal paving the way for a V-shaped recovery. While the market outlook regarding the macroeconomic recovery is optimistic, the stock markets are witnessing heightened volatility, driven by multiple internal and exogenous factors. Taking a closer look into the equity markets’ performance in 2021, the rise in Treasury yields in late February last year triggered a global equity sell-off. While the equity markets have stabilized since then, the high Treasury yields are contributing to high volatility in the industry. Also, the Archegos sell-off has rattled the markets to a certain extent and might call for new laws regarding derivative swap testing to be established.

Palantir Technologies Inc. (NYSE: PLTR) develops software solutions for federal government agencies and commercial businesses. Its proprietary Palantir Gotham software is highly coveted in defense and intelligence agencies, owing to its pattern identification from datasets and reports. Palantir Foundry, on the other hand, is a big hit among businesses as it creates a central operating system for data storage, integration, and analysis.

Water is one of the most vital components of life. It is thus natural that some investors seek to include water stocks in their portfolios. In general, water stocks have simple business models and are resilient to recessions thanks to the essential nature of their business.

While COVID-19 has taken center stage for the past year, there remains a huge need for advance testing, treatment options and cures for other diseases. That points toward personalized medicine and next-generation genomic sequencing (NGS) solutions.

There are many players in the sequencing market, each of which offers a different twist and exposure for investors.

2021 has been earmarked as the year for global recovery from one of the worst recessions in modern history. With complete lockdown during the initial months of the pandemic followed by the prolonged period of social distancing reducing activity, most countries, including Canada, are currently dealing with the repercussions of the economic slump.

The space industry is expected to reach a trillion-dollar valuation over the next decade, driven by declining production costs and disruptive technology inventions. Rising government spending and increased public interest should significantly accelerate this industry growth, as major economies around the world are currently racing to establish themselves as pioneers in space exploration. Morgan Stanley expects revenues from the space industry to cross the one trillion mark by 2040, registering a CAGR of 185.7%. Bank of America, on the other hand, estimates the market valuation to grow 230% to reach $1.40 trillion by 2030.

The electric vehicle frenzy, pioneered by Tesla, Inc. (NASDAQ: TSLA) has triggered a global automotive evolution. The rising climate change concerns across the world has been one of the key reasons behind the rapid rise of the electric vehicle industry, bolstered by favoring governments. However, with the global economy currently grappling with one of the worst recessions in modern history, the automobile industry is currently in a slump. Consequently, without adequate earnings and revenue growth, EV stocks are presently trading at surmounting valuations, raising concerns regarding a potential asset bubble.

The GameStop frenzy has left many people wondering about the connotation and implications of a market squeeze. While the speculative rally kickstarted by a Reddit group is battling to take on the biggest hedge funds in the United States, a similar situation in the commodity markets is brewing. Retail traders have been formulating another coup to take on the precious metals industry, allowing silver futures to hit an eight-year high of $30.03 per ounce on February 1st.

ETFs are wonderful investment vehicles wherein you can hold positions across asset classes through just one fund. You can also have sector-specific exposures like crypto currencies, cannabis or REITs.

With the current COVID-19 pandemic induced volatility in the markets, ETF investors need a fool-proof strategy in place to reap maximum benefits. These tactics must focus on proper asset-allocation and risk management. In such uncertain times, investors must be particular about limiting their exposure to just one or two sectors like the financials or domestic energy. A well-diversified portfolio at this point should include Bond ETFs as well as those with International exposure.