The pandemic certainly wreaked havoc on many businesses throughout last year, setting some back temporarily and devastating others. Notwithstanding the chaos, several industries managed to experience a lot of growth and generate considerable investment buzz over the past year. For companies that have extra cash to invest, cannabis, cryptocurrencies and cybersecurity are all being touted as three major investment opportunities in 2021 and beyond. Here’s why.
Table of Contents
Investment Opportunities in 2021 and Beyond
The tentative global and local-level legalization legislation that is poised to breathe new life into the cannabis industry has insiders and in-the-know investors eagerly anticipating the remainder of the year. Consolidation, capital injections, and the aforementioned legalization in countries around the world and at the state level represent big investment opportunities in 2021.
The industry saw a number of private funding rounds in 2020 for cannabis-tech startups such as Dutchie and Leaflink, with investors indicating that they expect even more such deals to take place during 2021.
If you have been watching the industry and are on the fence about investing, inform yourself on how to go about understanding and investing in the marijuana industry before putting any money down. You can also open mock trading and brokerage accounts to practice investing in real-time, but with fake currency. It is a good way to learn the market without taking any risks.
Cryptocurrencies are once again receiving a lot of mainstream coverage and attention, including major investments from big institutions and shout-outs from high-profile investors and business leaders. Bitcoin, for instance, recently became the 9th most valuable asset in the world, with its market cap surpassing that of both Facebook and Tesla. A number of other large cryptocurrencies have also experienced dramatic growth and adoption very recently, including bitcoin cash, Dogecoin, Ethereum, and Litecoin.
Elon Musk announced that Tesla would be investing 1.5 billion dollars in Bitcoin and that it would be accepting it as payment for its electric vehicles in the future. With developments like this, it feels like we are on the verge of or may have already passed over to the other side of a genuine tipping point in the legitimation and adoption of cryptocurrencies. This opens up investing in these assets to a whole new class of retail investors and those looking for stores of value in volatile times.
The Bank of Singapore, for instance, has been quoted as saying that Bitcoin could one day replace gold as the store of value of choice. With all of this in mind, you can expect to see a sustained buzz surrounding cryptocurrencies and investing opportunities in 2021 and beyond. Tesla was just the beginning, and many other major institutional and private investors will continue to put significant amounts of money into high-performing coins.
Cybersecurity concerns have grown exponentially throughout the pandemic, spurred by significantly hastened digital transformation across industries and the work from home revolution that has seen vast numbers of employees connecting remotely to office servers and data. All of this has, understandably, created new cybersecurity vulnerabilities and exigencies, representing a boon for the industry, making it a top choice for investment opportunities in 2021.
The total value of the industry is expected to reach more than $322 billion by 2028, with major market players including IBM, Cisco Systems, Intel, and Dell. The main drivers of the growth will be a proliferation of malware, and particularly ransomware, which saw a 41 percent year-over-year increase between 2018 and 2019. Both public and private organizations are going to continue to invest more money in fortifying their digital infrastructure and ensuring they are mitigating their risks.
The major business publications have been writing about cybersecurity stocks and companies throughout the pandemic, with promising opportunities to get involved in a tremendous amount of medium-term growth.
As you look to growing your business in unique ways, putting some of your monthly cash flow into alternative investment opportunities in 2021 can yield higher returns than using your cash elsewhere.
There are few industries that won’t feel the impact of the pandemic in some way, shape or form, but there are certainly those which look poised to do well regardless. The above three industries represent real investment opportunities this year, each for different reasons, but each with many reasons to anticipate solid short and medium-term performance.