These are the most turbulent times and, now more than ever, the general warnings about the stock market remain the same – only risk what you can afford to lose, as all investments are prone to highs and lows due to the unpredictability of the market.
That said, there is money to be made from investing in stocks and shares right now, ranging from the reasonably reliable to the downright speculative, and so there is no time like the present to take the plunge with a variety of ASX stocks.
You can always tap into the knowledge base of informed and insightful traders and research firms offering weekly share tips, but in the meantime, here are a few areas of particular interest for investing in 2021.
Tourist recovery
The pandemic has brought absolute chaos to many industries, and some have barely traded at all since March – tourism, hospitality and travel being just three that immediately spring to mind.
When trading, it’s imperative that you invest in stocks before they climb in value – buying at an all-time high is a disaster waiting to happen, and so maybe investing in businesses that should recover this year right now is a smart move.
We can’t second guess the pandemic or recovery from it, but the hope is that some travel – possibly domestic, hopefully international – will be on the agenda at some point in 2021.
There will be a massive appetite among people all over the world to visit Australia as well as travel within the country itself. So, firms like Qantas Airways, Regional Express Holdings and the Sealink Travel Group all hold appeal.
eCommerce
With redundancies – and lots of spare time on our hands – comes innovation, and people are trying to make some money using their pre-existing skills and interests.
As a result, e-commerce has enjoyed another boom period, with many high street shops and malls closed or lacking appeal to visitors. While firms like Amazon, eBay and Etsy need no introduction, there’s a couple of Australian shares in the sector that offer potential value.
Redbubble connects artists with buyers from around the world, whether it be traditional art, clothing, crafts and much more besides. Temple & Webster stock affordable homewares and furniture that are built to last, while Kogan offers a bit of everything – all three firms have delivered increased revenues and customer bases, with plenty of area for growth in their share prices too.
Working from home
Zoom, Microsoft Teams, Skype, where would be without them?
Their share prices have hit all-time highs in the past year, no surprise there, but other shares in the home working sector can be leveraged for profit.
Potentially the pick of the bunch is Xero, an accounting software platform for businesses of all sizes that can be stored and shared in the cloud, enabling multiple employees to access data and modify it accordingly.
With robust security, small and medium businesses can easily connect their workers without losing data visibility – vital when individuals are working from home in different towns and even cities – and this mobility makes Xero an interesting proposition in 2021.
Other areas, like web hosting and anti-virus software, are also expected to enjoy growth as Australians continue to work from home for the foreseeable future.
Biotechnologies
While this might seem a ‘reactive’ play given our current situation, biotechnology in science will be a huge growth industry in years to come.
Sonic Healthcare is an Australian company with laboratories worldwide, and their leading pathology and radiology services mark them out as a healthcare provider in which to invest.
More and more research and development are being performed in new and exciting areas. For example, did you know that macular degeneration (AMD) is the leading cause of blindness in Australia? Opthea Limited wants to do something about that. They are currently developing game-changing treatments for age-related conditions like AMD – any breakthroughs they make will likely be reflected in the share price.
So, if you diversify your portfolio and spread your risk, these Australian shares could be major plays in 2021.
