With the holiday season in full swing, many investors are turning their attention towards more value-oriented, long-term gains. After all, what better time to stock up on the blue-chips and potential winners of 2021? Although the markets are still trying to find their footing amid the pandemic and recent election, history tells us that the end of the year can often be a lucrative time for investors with an eye on the future.
To that end, here are three sectors to consider going into 2021 that have observed a string of bullish seasonality over the last few years.
First on the list is consumer discretionary. The resurgence of consumer demand following the prolonged COVID-19 crisis period is expected to be the main catalyst behind this sector’s future performance. With the holiday season being the biggest shopping period of the year, consumer discretionary stocks should benefit from a boost in sales. Some names to consider in this space include Nike, Ulta Beauty, and Nordstrom.
The tech sector is also expected to perform well in 2021 and beyond. As the world moves toward digitization, demand for technological solutions is increasing all the time. This sector has seen a surge of investments over the past few years, making it one of the tech stocks to watch as the recovery strengthens. Microsoft, Apple, and Alphabet (Google’s parent company) are among the tech giants that should feature strongly in most investors’ portfolios.
Finally, healthcare stocks remain a go-to option for investors in 2020. Although the Brexit negotiations and supply chain issues continue to cause uncertainty in the sector, healthcare companies are largely seen as safe since their products and services are primarily a staple of consumers regardless of economic climate. Companies such as Abbott Laboratories, Johnson & Johnson, and Pfizer should be prime contenders for value-oriented investors in 2021.
As the year draws to a close, investors should look for sectors that have displayed historical seasonality and have remained relatively resilient amid a turbulent 2020. Consumer discretionary, tech, and healthcare stocks should give investors the most bang for their buck, while providing the stability and long-term growth potential they are seeking.