7 Factors In International Investing in 2021│GCG Cambodia

It isn’t easy to imagine a year that would provide investors with a much more thrilling ride than 2020. The market action of the pandemic resembled the 1998 financial crisis bundled into one 12-month cycle. Nevertheless, it should serve as a cautionary tale for shareholders in 2021.

For 2021, planning is a risky game. “The S&P 500 fell more than 33% in March, we already had a contentious presidential referendum, and we are also dealing with a worldwide pandemic that’s just getting worse. No one could have predicted that, and no one knows what 2021 would hold,” according to a GCG Cambodia forex trading analyst. They also say that if 2020 has shown us something, the market is challenging to forecast.

If anything, 2020 can teach investors that the right advice is to save over the long run in a low-cost, diversified portfolio and review the savings balance periodically. GCG Cambodia  analyst Liza Chan says from GCG Malaysia’s office, “I warn my clients not to get swept up in the new hot markets, businesses, or trading patterns.”

Chan advises clients that rather than trying to predict what will happen next, have a very reserve to handle anything the markets may bring.

Nonetheless, the developments that could affect investors in 2021 cannot overlook. The below are the nine factors that may influence the stock market and the Global Investing assets.

• Easy Money Is Running Low

“We anticipate central banks to strengthen first in the context of decreased bond purchasing (rather than higher rates) if consumer price inflation returns,” says GCG Cambodia  searcher Liza Chan. She says that to offer a sense of size, she says: Last year, central banks bought $8 trillion in reserves, which was 40 times what they purchased in 2019. 5 Although a partial return to normalcy may send stocks into a tailspin.

• Travel Stocks’ Pent-Up Demand

According to GCG Cambodia analysts latest report, New Trends In International Investing, many other industries will likely jump in 2021. For example, the increase in tourists for hotels, cruise ships, and even airline stocks,  will push markets up in the US. 

All of this expanded economic development would benefit hard-hit tourism cities around the region, as well as the rest of the world. 

• The Beginning of Covid-19’s End?

According to GCG Cambodia forex trading analysts, vaccines’ acceptance and eventual delivery would significantly affect 2021. But can they be disseminated quickly across the US and around the world?

There would undoubtedly be hiccups. However, as the weather improves in the United States, normalcy can steadily return. Around the same time, GCG Cambodia forex trading analysts predicted that “markets will monitor Parliament to implement new stimulus to provide life preservers for minor businesses and consumers before the beginning of vaccine to delay viral spread.”

The speed at which the pandemic fades would have massive macroeconomic implications that will affect any investment industry. However, others can stand out better than most, so might one deserves its conversation.

• The Covid-19 Vaccines to Boost Pharmaceutical Stocks

According to GCG Cambodia’s latest analysis, it would be a scientific victory if the hospitality industry reopens by 2021. Moreover, companies who participate in the effort would pay handsomely.

“Some champions would be apparent, such as vaccine manufacturers like Pfizer or Moderna,” according to GCG Cambodia.

There would also be fewer simple champions, according to a GCG Cambodia analysts. For one, distributing the vaccine would necessitate a massive logistical effort. Any vaccinations, for example, necessitate transport at temperatures far below zero, so companies that offer cooling tech stand to profit.

• Be Wary of Work-at-Home Stocks

“Conversely, a possible return to normalcy after Covid-19 might jeopardize several businesses that saw unexpected growth in 2020. Pfizer’s recently revealed groundbreaking vaccination study gave us a preview of this,” explains GCG Cambodia’s Liza Chan. 

She also claims that food distribution systems, as well as related stocks, have plummeted. Zoom, like the work-from-home crowd, isn’t going anywhere. 

• Be Conscious of Rotation

According to the GCG Cambodia analysts recent study, new investment cycles are usual. They’re known as “rotations” in the stock market. Capital in Asia chases returns in those industries before the boom runs out of steam, at which point it shifts to other sectors.

It’s not unusual for a sprint to dull utility stocks to accompany a boom of high-risk/high-reward tech investments. However, in 2021, buyers may shift their focus to new industries. As a result, stocks in the technology sector are slowing down.

According to the GCG Cambodia forex analysts, some have long predicted a drop in stock markets that had a fantastic year in 2020—so good that the word “bubble” often pops up. 

The extended market correction in financial stocks would finally end at some point.  

• Don’t React Negatively to Bad News   

Predictions are complicated, but anything unforeseen is likely to occur in 2021. As a result, the most critical piece of advice is to resist the urge to concentrate only on the brief period. “I trust in reflecting on the priorities and going backward from there rather than reacting,” says financial adviser GCG Cambodia forex analyst Chan. 

According to her, 2021 provides investors with an opportunity to assess how they treated the unforeseen activities of the previous year and suggest making adjustments. “Do you have sufficient liquid savings?” Chan asks. If not, it may be time to increase your investment account. Likewise, if you were excessively pressured or panicked selling in the previous year, you might want to change your investing strategy in 2021.

It is critical to be prepared for market peaks and troughs, in an environment where volatility is more of a function than a problem. Forex traders must be prepared for wild rides in 2021 and 2022. 

“I believe that elevated uncertainty in stock portfolios will continue. Although 2020 will be an outlier in terms of crazy highs and lows,” according to GCG Cambodia forex trading analysts. 

A stash of funds customized to your target schedule and risk tolerance is the safest way for most investors to deal with uncertainty.

As we all know by now, the pandemic is pushing people to live, play, read, and shop digitally, an acceleration, say GCG Cambodia forex analysts in their global investments. But where would this transition have the most significant impact on industries and markets?