US financial markets have baffled investors in 2020.
What began as a year filled with economic hope and prosperity rapidly declined into a miasma of dithering financial flops. By the time COVID-19 skipped from China to the rest of the world, it was already too late. Mass unemployment, dramatic cuts to supply and demand, and unprecedented woes started to set in. Yet, the financial markets – like the human spirit – remained resolute. For a few weeks, the NASDAQ, Dow Jones Industrial Average, and the S&P 500 took a beating.
Then the turnaround began. Multi-trillion dollar stimulus packages injected life into an otherwise moribund economy. Today, ‘Trumponomics’ has proven itself worth the effort. The prosperity has spread to neighboring countries like Canada. Despite his low popularity numbers, President Donald Trump has presided over the most prosperous period in US history, and he has a few more months [potentially 4 more years], to continue cultivating the current economic purple patch.
Embracing the Power of Virtual Technology and All Its Benefits
Certain industries have benefited immeasurably from the remote work/life culture that has now become a reality. Many examples abound. Folks may not be frequenting their favorite restaurants as much, but home delivery has soared. Much the same is true with education, counseling, banking, healthcare, and entertainment. For example, the closure of land-based casinos allowed these operators to simply pivot to provide online services to their players. While some land-based operations like Red Deer casino in Canada continued to thrive, the comfort, cost-effectiveness, and convenience of online casino operators serve as beacons for the entire industry.
Players get to maximise utility, minimise cost, and enjoy a Vegas-style ambience from the comforts of anywhere, with the option for demo-play games available too. It’s not only online gaming that is enjoying soaring levels of popularity nowadays. The workforce is now opening up to a global pool of talented recruits. Physical limitations have served no purpose but to curtail creativity. Now companies are able to employ the best talent. Corporations too, are embracing remote workers and benefiting tenfold.
From Macroeconomic Success to Microeconomic Success
From macro to micro, economic prosperity is well within reach for the average household. The trick is being able to discern between poorly performing financial instruments and strongly performing financial instruments. During the current financial crisis, several poorly performing sectors have become persona non grata. These include travel and tourism, particularly cruise ships. The likes of Royal Caribbean Cruises Ltd, Carnival Corporation, and Norwegian Cruise Line Holdings have endured a hellish period on the stock markets.
Indeed, the industry has ground to a halt, and no money is coming in. Stock prices reflect this negative sentiment, with bargain deals for anyone looking to cash in on a potential upswing in the cruise ship industry. Carnival Corporation typically offers a $100 cruise credit every year to anyone who owns 100+ shares of Carnival Corporation stock. Provided the bottom doesn’t fall out of the stock, now is a good time to build up a portfolio and enjoy the annual benefit. An investment worth making? Possibly.
What Are the Hottest Investment Options Right Now?
Opinions are mixed about the precise mix of financial instruments for a portfolio. Several irrefutable facts have emerged in 2020, backed up by decades of investment returns. For one thing, gold remains one of the most prized investments of all time. Sure, it falters when stock markets are booming. Fortunately for gold bugs, this precious metal holds its own during geopolitical uncertainty. It has returned phenomenal – outsized – profits over the years and continues to serve its role as a hedge against volatility. SPDR gold trust is one such investment – an ETF – that is performing strongly in 2020. Inexplicably, companies like Apple Inc are performing well too in this climate. In fact, Apple Inc recently announced a 4-for-1 split, and this will potentially send the stock through the roof.
These are but a few worthwhile tips for investors that are bound to bring some relief during these uncertain times.