The Top Investing Trends Of 2021 So Far

There’s no denying that there’s more news than ever before.

Even journalists have admitted to feeling overwhelmed with the acceleration of the news cycle in the last few years, so it’s not surprising that so many people now feel the need to turn off their phones and TVs every now and then.

If you’ve been feeling a little burned out, but you still want to stay on top of your investing game, then this will be a helpful list for you.

Government Spending

One of the biggest questions for market observers is whether the US and Canada governments will approve additional stimulus packages, and what those plans will look like.

US President Joe Biden and the Democratic Party continue to debate a multi-trillion-dollar infrastructure plan that could have a massive impact on the Stock Market. Thus far, the market’s performance suggests that it is reacting positively to these negotiations, and will continue to do so as long as some type of package is eventually approved by Congress.

Prime Minister Justin Trudeau’s new government looks likely to impose higher taxes on Canadians. That could meet some of his campaign’s promises, but the current plan isn’t enough to pay down Canada’s record levels of debt, which some market experts say makes the country more vulnerable to another economic downturn. 

Canada saw more debt accrue during the pandemic than any of its peers, and many investors fear that could inhibit its ability to meet long-term challenges.

“We had a lot of fiscal space, a lot. And we used a lot of it on the pandemic,” Dominique Lapointe, senior economist at Canada’s Laurentian Bank, told Reuters. “People are now worried because we used that fiscal space and we’re still continuing to introduce new measures.”

The End of Covid-19?

As vaccines allow economies to reopen their doors, the marketplace will face many questions. Can the current recovery be relied upon?

If several major countries see a serious increase in infections, that could cause the Stock Market to take a big hit.

“The market often reacts quickly to the news cycle now, and we’ve seen that throughout the pandemic,” said Matt Choi of Certus Trading, an investment education site. “Serious traders have to keep their eye on the ball.”

If the recovery continues at the current pace and vaccinations keep doing their job (with a majority of people agreeing to take them), then the market will likely continue to grow for the foreseeable future.

The speed at which the pandemic recedes will have the biggest impact on the global economy that will affect every industry.

Tech Stocks Slowdown

Many market observers believe that a slowdown is coming for technology stocks despite their excellent year in 2020. It’s been such a longtime bull market for technology stocks that analysts think it could be a bubble.

As 2022 approaches, several big pieces of news will play a role, including the ongoing lawsuits against Google and the ongoing investigations of Facebook. Regardless of how the Biden administration handles these controversies, it seems clear that the attorneys general of many US states, especially New York, will proceed with their own litigation against many of the biggest tech companies.

Cryptocurrencies and NFTs

Even if you don’t fully understand digital currency or NFTs, you have probably heard something about them.

That’s because the marketplace for cryptocurrencies has exploded during the pandemic, and especially during 2021. As major banks and financial institutions finally embrace cryptocurrency, it’s now fair to say that this an important new part of the financial ecosystem — even if most people can’t be certain what exactly that will look like.

It’s understandable if you’ve taken some time off from the news, but the next six months will likely see major activity in the marketplace that will affect investments of all kinds. Pay attention to these factors, and you’ll stay on top of your game.