5 Best Investments for 2021
If you’re thinking about your long-term financial future, then investing may be a key part of your plan.
Since the coronavirus pandemic, many of the world’s biggest stock markets have surged to record highs.
This has attracted more and more people to the world’s financial markets to try and find the best investments for 2021.
In this guide, we cover some of the best investment trends for this year, how to start investing in them with low commissions and how to access FREE cutting edge research tools!
Table of Contents
5 Best Investments for 2021
Below is a quick list of what could be some of the best investments trends for 2021. It’s a great place to start for further research and analysis which we cover further down this guide.
- Nasdaq 100 Stock Index
- FTSE 100 Stock Index
- Crude Oil Futures or ETFs
- Silver Stocks, Futures or ETFs
- Global Clean Energy Funds
When trying to find the best investments it’s always important to do your own research and have strict risk management guidelines as any form of investing involves winning and losing. One of the best ways to build the right skills and test your ideas and theories on the best investments is to use a demo account.
From this account type, you can invest in a virtual environment until you are ready to go live! It also allows you to test all of the features and services provided by your broker. With Admirals, you can open a demo Invest.MT5 account or a live account and invest with low minimum transaction fees of just $1!
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Best Investments 2021: Research & Analysis
If you’re thinking about what to invest in 2021, the list below provides some insight into a few of the big investment trends and themes for this year. This list is not exhaustive and there are many other markets and themes that could prove to be better.
It’s also worthwhile remembering that any major investment theme or trend can change over time so also focus on risk management. Ultimately, the best investments right now will depend on your own individual risk tolerance and goals for your investing portfolio.
If you are focused on the best investments for beginners then, as stated earlier, the best way to build experience is through using a demo account first. If you have already opened an Invest.MT5 account, you can download the MetaTrader 5 platform for free. Then you can follow through on the charts below to view live prices of stocks, indices, commodities, exchange traded funds (ETFs) and other asset classes.
1. Nasdaq 100 Stock Index
The Nasdaq 100 stock market index is a basket of the largest 100 companies listed on the NASDAQ Stock Exchange. The majority of the companies listed on this exchange are technology companies. The index includes companies such as Amazon, eBay, Facebook, Microsoft, Tesla, etc and is one way to trade the US stock market.
Since the lows of the coronavirus pandemic to the middle of this year, the index has risen more than 100%. This was largely due to the shift towards remote working where technology stocks benefitted the most. While traders and investors could research and invest in individual technology stocks, the Nasdaq 100 index provides exposure to the broader sector.
Source: Admirals MetaTrader 5, NQ100, Monthly - Data range: from 1 Oct 2005 to 15 Jul 2021, performed on 15 Jul 2021 at 1:30 pm GMT. Please note: Past performance is not a reliable indicator of future results.
The chart above shows the long-term price development each month of the Nasdaq 100 index from October 2005 to July 2021. It’s clear to see that the two major financial crashes – the 2008 financial recession and the 2020 coronavirus pandemic – didn't have a huge impact over the long term.
This highlights the resilience of the technology sector. After all, how much technology do you use in your own life? Can you also see that more and more people are using technology? This is why many investors consider the technology sector as one of the best investments for this year for growth investing.
2. FTSE 100 Stock Index
Research from Bank of America, shows that fund managers are now more overweight in UK stocks than underweight which is a major shift in sentiment. For years, the UK stock market has been shunned by investors due to Brexit.
However, now that the relationship between the EU and the UK is clear (albeit with some question marks regarding the Northern Ireland Protocol), economic prospects have risen. This has also been helped by the fact the UK has led the race in the coronavirus vaccine rollout.
The Organisation for Economic Co-operation and Development (OECD) is now forecasting the UK economy to grow at its fastest rate since the Second World War, making the FTSE 100 stock index a contender for the best investments UK.
The FTSE 100 stock market index is an index of the largest 100 companies by market capitalisation listed on the London Stock Exchange.
Source: Admirals MetaTrader 5, FTSE100, Monthly - Data range: from 1 Sep 2005 to 15 Jul 2021, performed on 15 Jul 2021 at 1:30 pm GMT. Please note: Past performance is not a reliable indicator of future results.
In the long-term, monthly price chart of the FTSE 100 stock market index above it’s clear to see the decline from 2017 to 2020 – the aftermath of the Brexit vote into the coronavirus pandemic. From the lows of the pandemic in 2020 to the middle of 2021, the index has risen more than 50%.
However, this stock market index is one of the only indexes in the world that is still trading below its pre-pandemic levels. Many of the world’s stock market indices are trading at record highs. This could provide some unique value investing opportunities from the best investments UK list.
3. Crude Oil Futures or ETFs
The price of crude oil has had a roller coaster ride in the past few years. Even before the pandemic, oil prices were falling. After the pandemic, global demand dried up while supply increased due to the Saudi Arabia and Russia oil price war.
This caused the price of West Texas Intermediate (WTI) Oil – an international benchmark – to fall to record lows and into a negative price (this is where producers were paying others to take the barrels of oil from them as they had nowhere to store them due to the supply build-up).
Since the negative pricing, the oil market has rallied sharply and is now trading more than 300% higher. Some analysts believe that this rally is just the beginning and are calling for oil to be trading at $100 per barrel. This represents significant upside potential from the current levels of around $75.
Source: Admirals MetaTrader 5, WTI, Monthly - Data range: from 1 Dec 2006 to 15 Jul 2021, performed on 15 Jul 2021 at 1:30 pm GMT. Please note: Past performance is not a reliable indicator of future results.
In the long-term, monthly price chart of WTI crude oil above, the price has broken through the descending trend line from the 2008 highs. From a technical analysis perspective, this break represents a bullish scenario.
There are a variety of ways to speculate on the price of oil. As the product trades through exchanges like the New York Mercantile Exchange, you can trade oil futures contracts. You can also invest in exchange traded funds (ETFs), such as the United States Oil Fund ETF, which tracks the underlying price of the oil futures market.
From the Admirals multi-asset trading platform, you can access both markets and trade them via CFDs (contracts for difference). This product allows you to speculate on the price direction of the market, without owning the underlying asset. This means you can trade long and short and potentially profit from both rising and falling markets.
4. Silver Stocks, Futures or ETFs
The price of silver has garnered a lot of attention from retail investors in the last year. It was one of the markets on the famed Reddit forum where traders grouped together to collectively buy a market and squeeze out any of the institutional short sellers. While these situations come and go, many investors are pointing to the bullish fundamentals of the silver market.
This includes the fact the metal is a key component in the building of electric vehicles. As governments try to cut down carbon emissions, they are encouraging automakers and consumers to shift towards electric vehicles which are forecasted to cause an increase in demand for silver. There are also many other industrial uses for silver which are also on the rise.
Source: Admirals MetaTrader 5, Silver, Monthly - Data range: from 1 Aug 2005 to 15 Jul 2021, performed on 15 Jul 2021 at 1:30 pm GMT. Please note: Past performance is not a reliable indicator of future results.
The monthly price chart of silver shown above shows a clear break above a key horizontal resistance level at $21.00 (black horizontal line). If the silver price can stay above here, there is scope for prices to eventually move back to the record high of just under $50.00 from 2011.
With Admirals, there are a variety of ways to invest in silver. These include:
- Silver CFDs. This allows you to speculate on the price direction of silver prices without owning the underlying asset. With CFDs you can also trade on margin which means you could control a larger position with a small deposit amplifying both gains and losses.
- Silver Stocks. Admirals offers more than 4,000+ stocks from around the world including many of the top silver producing companies such as Pan American Silver Corp, First Majestic Silver Corp and others.
- Silver ETFs. A silver ETF allows you to invest in a fund that tracks the underlying price of the silver market by investing in silver companies or the actual physical metal. There are thousands of ETFs available in the Admirals platform including the Aberdeen Standard Physical Silver Shares ETF and iShares Silver Trust ETF.
5. Global Clean Energy Funds
Did you know that investments in clean energy have gone from $33 billion a year from 20 years ago to more than $300 billion last year? The shift towards clean energy sources is now a high priority for many governments due to the impact of climate change.
Clean energy refers to the technology behind producing clean electricity and includes wind and solar power, hydropower, biofuels and others. Since the coronavirus pandemic, investors have focused on stock sectors in clean energy and shunned companies involved in fossil fuels.
Source: Admirals MetaTrader 5, DNRG, Monthly - Data range: from 1 Dec 2007 to 15 Jul 2021, performed on 15 Jul 2021 at 1:30 pm GMT. Please note: Past performance is not a reliable indicator of future results.
It’s a trend that is likely to continue making global clean energy funds a leading candidate for the best investments for 2021. For example, the chart above shows the price development of the iShares Global Clean Energy UCITS ETF which is a fund that invests in companies involved in clean energy production.
As you can see from the chart above, the price of the fund was languishing at record lows for much of the past decade before the pandemic. Since the pandemic, the price of the fund has surged higher as demand from investors increased.
How to Get Started with the Best Investments 2021
Once you have opened your live or demo Invest.MT5 or Trade.MT5 account, you can start investing or trading from the MetaTrader 5 trading platform from your desktop, web browser or mobile phone. Let’s go through a step by step process on investing from your web browser.
1. Login to your Trader’s Room from the Admirals website.
2. Click the Trade icon next to your account name to open the MetaTrader 5 web platform.
3. Right click in the Market Watch window and select Symbols. This allows you to view all the instruments available. Select your chosen market and click Show to add it to your Market Watch list.
Source: MetaTrader 5 Web, 15 July 2021
4. You can view a live price chart by dragging the symbol name from the Market Watch list onto the chart. You can also change timeframes and add technical trading indicators to help with your analysis.
5. To open a trading ticket right click on the chart, select Trading and New Order. You can input your trade size, stop loss and take profit levels.
Did you know that as an Admirals client you can also access premium analytics such as the Technical Insight Lookup indicator completely FREE?
This indicator allows you to search for actionable trading and investing ideas on thousands of different markets.
For example, after searching for ‘silver’ in the indicator it shows me there are 19 technical trading events happening on that market.
Source: Premium Analytics, 15 July 2021
The indicator provides detailed explanations of the technical events in text and with charts. This is a great way to supercharge your trading and investing knowledge and execution.
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Why Invest with Admirals?
✔️ Invest with a well-established company authorised and regulated by the UK Financial Conduct Authority (FCA) and the Cyprus Securities and Exchange Commission (CySEC), among other well-known financial regulators.
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✔️ Supercharge your MetaTrader 5 trading platform completely FREE by upgrading to the Supreme Edition platform to access the Technical Insight Lookup indicator.
Did you know that one of the best ways to get started is to open a FREE demo trading account?
With this type of account, you can test all of the services and features offered by Admirals completely free!
You can also test your trading and investing ideas in a virtual environment until you are ready to go live!
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