12, 2021 / 01:50AM /Sponsored post by Globeex Marketing /Header Image Credit: Pexels
With global financial brokers stepping up market penetration opportunities in Africa, Nigerian traders are likely to hop on several profit trains in 2021. Global market trends are becoming less unpredictable, making the year a pleasant stroll down money and capital markets in the year, with equities, fixed income and commodities becoming flavours of the season. Here are some of the best deals Nigerian traders could benefit from in 2021.
Stocks & Indices
For the patient trader, stocks and indices still offer a great opportunity to earn a profit in the long term.
US stock indices such as the S&P 500 and Nasdaq 100 are especially profitable. Both increased by more than 10% in 2020. The S&P 500 contains some of the world's most valuable companies, and recently added Tesla to its portfolio. Meanwhile, Nasdaq 100 is dominated by tech stocks, which represent a sector that has continued to thrive even during the coronavirus pandemic.
Furthermore, stock indices tend to increase in value whenever investors are optimistic about the global economy. In 2021, the world expects that thanks to widespread vaccinations, the end of the coronavirus pandemic will finally come. In addition, the presidency of Joe Biden in the United States is also setting a calmer tone for the markets, with more stimulus on board. Thus, 2021 will likely be a year of economic recovery, which bodes well for stock indices.
You can trade all of these indices with a standard account from SuperForex.
The best companies to invest in are those that have grown steadily over the years, and which have not been barred by the COVID-19 pandemic. Or better still, those that have shown impressive growth in recent months as people adopt a work-and-stay-at-home ethic.
One clear example is Amazon. The e-commerce giant is one of the most valuable companies in the world, and for good reason. Its services were in even greater demand during the pandemic when millions of people became confined to their homes. Plus, Amazon Web Services, which is used by other businesses in the digital sector, is also bringing in hefty profits. Amazon shone in 2020 and will continue to do so this year.
Netflix is another company to look out for. Its Q4 earnings report showed that the demand for its streaming services increased quite a bit due to people spending more time at home. It is also expanding into new markets, quickly adapting to global content trends. This makes it a safe choice for prudent investors.
If 2021 is indeed a year of economic growth, then risky assets will prove more profitable.
The British pound has performed quite well so far this year. The United Kingdom leads the world in terms of COVID-19 vaccinations. It is likely to become the first country to have 70% of its population vaccinated, achieving herd immunity. This could fuel the UK's speedy recovery from the pandemic, while other countries still struggle with the supply and distribution of vaccines. The GBP/USD will definitely be the pair to watch in this regard.
Of interest are also the Australian and New Zealand dollars. Both depend on the performance of the Chinese economy to grow. Despite the pandemic, China's economy still grew in 2020. There are currently some lockdowns around China and industrial indices are slipping. But if China repeats the events of 2020 and shrugs off the virus faster than anyone else, the AUD and NZD could shine.
Metals are likely to be the most promising assets in this category in 2021. Gold prices might increase if the US dollar depreciates. However, the real deals will happen with industrial metals that are in high demand: palladium, copper, and aluminum.
Crude oil is also worth keeping an eye on. However, exercise caution with this asset. Oil prices will rise only if the pandemic dies down, with both industrial activity and international travel increasing. In addition, OPEC+ will also need to control the supply carefully. If too much oil floods the market before demand returns to pre-pandemic levels, prices will slump.
You can trade all these assets and more by opening an account at SuperForex. This broker supports Nigerian naira accounts and many African payment systems.