Nobody expected that the stock market would take a nosedive in 2020. But then again, who could have seen a pandemic coming? But with vaccines signaling the beginning of the end of COVID-19, the stock market is getting a much needed shot in the arm. But which industries should you focus on for your investing in 2021?
William Huyler is a personal financial advisor based out of West Chester, Pennsylvania. He provides sound financial advice to numerous clients throughout Pennsylvania. With an extensive background in assessing market trends, he helps his clients create a financial plan that makes the most sense for their financial situation and future goals. That makes him one of the best qualified financial advisors to shed light on the top industries to invest in for 2021.
Even when oil prices were hitting rock bottom, few investors really lost faith in energy stocks. According to financial advisor William Huyler, the world cannot run without energy. Green energy, in particular, is the future he adds. If the pandemic has taught us anything, it’s that consumption trends are shifting towards renewable energy.
For investors, that means that 2021 will be the year for energy stocks of low carbon or carbon-free companies. These include companies like Plug Power (PLUG), Pioneer Natural Resources (PXD), and Diamondback Energy Inc. (FANG) to mention but a few.
The upheaval that the restaurant sector has gone through because of the pandemic has sent stocks plummeting. That makes these stocks easy pickings for the smart investor. “The restaurant industry,” says financial advisor William Huyler, “might be down, but it’s not out. Recently the industry has shifted to home deliveries, drive-thrus, and outside dining. As the pandemic eases in 2021, this industry will be among the first to bounce back.”
The entertainment industry is as resilient as ever. With most venues closed and people under lockdown, the industry found other ways to reach people in their homes. But, as the economy rebounds in 2021 and it becomes safer for people to visit parks and theaters, most of these stocks will be on the rise again.
It might be some time, however, before people stand in long lines to get tickets for a theme park. But until that happens, it would be prudent to invest in the stocks of companies such as Live Nation Entertainment (LYV), Dave and Buster’s (PLAY), and Six Flags (SIX).
If working from home hit the economy hard, it was the retail industry that was impacted the most. According to William Huyler, the fashion industry watched in dismay as people’s attire became mostly leisurewear and sweatpants. Shoes, hats, handbags, and other accessories became redundant. But if the fashion industry took a hit, other retailers in the home improvement niche were on the rise.
William Huyler on Healthcare
Healthcare is an industry that defines the meaning of resilience in the face of a pandemic. Even though many healthcare stocks continued to rise and gain value in 2020, many experts believe that these stocks are still undervalued. Of course, companies like Pfizer and Moderna are on the front lines, literally, with their COVID-19 vaccines. They are expected to make more gains going into 2021 and beyond. But it’s other companies that have seen a slump during the pandemic that are expected to benefit from the rebounding economy. This includes companies specializing in elective surgeries, among others. Healthcare stocks to watch for include Becton, Dickinson & Co. (BDX) and Baxter International, Inc. (BAX).