If something has been learned from analyzing the investment portfolio of various experts in the sector, it is that the key to a good strategy in the stock market is diversification. When people have stocks in various industries, as well as a good variety of other types of assets, it is easier to have an acceptable level of risk and potential for profit. On the road to 2021 this principle will remain true, and certain sectors will have to be seen.
Cloud computing and your investment portfolio
Many companies, in the middle of 2020, have focused on digitizing their businesses. Therefore, there have been some interesting dynamics in the stock market. It is worth remembering that profits are never assured, even with a promising portfolio. But cloud computing companies (and their stocks) have proven popular with investors. So they should be liquid enough for any future strategy.
The film industry and 2021
During 2020, the movie theaters were closed. This, of course, affected their income in the short and medium term. As COVID-19 control efforts progress, stocks of these brands may once again gain attention among more than one investment portfolio. However, it is important to remember that reopening is not assured in the near future, so care is needed with these types of assets.
Foreign exchange market: A resource that could enter your portfolio
A good part of the investors in the market like to include in their future strategies some currency, such as the Mexican peso, the US dollar or the Chinese yuan. Some of these currencies can be the key to a diversified portfolio, as they are popular with experts who want to control the uncertainty of some volatile markets. The US dollar is one of the favorites in this market, but the New Zealand dollar has also gained popularity.
It is important to remember, again, that past performance never ensures a good future result. For this reason it is important to have a diversified portfolio. With the help of platforms like eToro, users not only have the opportunity to create their own investment strategy. They also have the opportunity to review industries and assets that perhaps much more traditional tools would not make so easily available to them.
Create an investment portfolio to suit you
eToro is a regulated entity, in Europe by the Cyprus Securities and Exchange Commission and in the UK by the FCA. Likewise, it is registered with the CNMV within the Investment Services Companies section of the European Economic Area in Free Service. It also has the Australian ASIC regulation. CFDs are highly leveraged and risky, and may not be suitable for all investors. You can lose more than your initial investment. This content is for informational and outreach purposes only and should not be considered as investment advice or recommendation. Past performance is not an indication of future performance.