A Promising Market for Investors After a Year of Choppy Global Stock Markets

By James Mellor posted 07-28-2021 22:22


2020 marked the beginning of a new decade and the beginning of a year of unprecedented uncertainty. When the pandemic hit the world, it was the first world countries that were hit the hardest. 

Panic set in and UK investors were found wanting as the COVID shook the world. The UK stock market was in tatters and many investors and firms sunk. However, a year later, things are starting to look up. 

Current UK stock market health

During the course of 2020, many markets tanked and several companies saw their shares drop by substantial margins. However, 2021 brought with it a glimmer of hope and stability due to closed markets that started to reopen. The vaccination roll-out has been met with massive success and people are beginning to move forward with more confidence. 

Due to the stock market that took a nosedive, many shares were available at very low prices, prompting a buy market. Companies like Royal Mail, Ashtead, Entain and BT group have performed exceptionally well. Due to the massive losses sustained in 2020, there is now ample opportunity for new players to enter the market at a fairly low and competitive price range. 

Where to invest

Not all companies are worth investing in after the pandemic, as there has been a massive shift in consumer behavior. Investment trusts are among the favorite areas where newcomers and seasoned investors alike are looking to put their money. Investment companies like Janus Henderson investors have gained a lot of trust due to their long-standing success rate and experience in the stock market. 

Their portfolios are diverse and are headed by teams of specialist investors. The general public does not have the experience to dabble in the stock market, but due to the freedom and ease with which the globe now has access to information, more and more people are becoming aware of the potential of the stock market. 

What not to do

New investors are often stuck with a form of anxiety and a fear of missing an opportunity and blindly follow the advice of anyone who seems to know more about the market than them. In the end, they get their fingers burned and lose substantial amounts of money. One such example is the Didi stock. 

Not long ago, their stocks were listed on the New York stock exchange and soon after, the Chinese internet regulator banned Didi Chuxing from being sold in China, sending their stocks on a downward spiral. Research is key and if you are not going to do your due diligence, then the chances are that you are going to lose your money.

Noteworthy companies to consider

As the pandemic fades, there are several industries poised for a comeback. One industry that is looking to flex its economic muscles again is hospitality. 

The travel and leisure industry was dealt a massive blow, but as things return to normal, people are hungry to travel and explore once more. The main contributing factor that makes hospitality a promising bet is that travel will open soon due to the rapid vaccination programs going on.

Another industry that has gone from strength to strength is the online retail industry. The giants in this sector are still cruising, but other companies like Boohoo, ASOS are being heavily considered due to their growing customer base. In only a year, they have recorded millions of new and active customers. As more stores close and the online market gains more ground, their future is looking rosy.