Market Picks 2021

On this episode of the Wiser Wealth Roundtable podcast, the team discusses their top fund picks and predictions for the market in 2021.

Listen on Apple Podcasts or watch on YouTube:

SUMMARY:

Brad’s Market Picks

The technology sector continues to be the star of the market. We especially saw this in 2020 with the pandemic. Firms like Zoom and Amazon benefited greatly from trends related to the pandemic like working from home and online shopping. Many other technology firms benefited from our change in habits this year. Vanguard recently put out a white paper on the Idea Multiplier effect. The theory is that every great idea begets other great ideas. Today, it is believed that for every one good idea there are 400 other ideas spawned from the initial idea. Vanguard’s analysis suggests that a recent surge in the Idea Multiplier portends a productivity increase to 1.2% annually over the next five years, double the rate of the past two decades. That will mean higher wages, higher profits and higher living standards across the globe.

Related to technology and innovation, Brad’s top ETF pick for 2021 is the ARKK ETF. This fund has had a tremendous run in 2020 and includes innovative and technology focused companies like Tesla, Roku and Zillow. Another similar ETF is SPDR® S&P Kensho New Economies Composite ETF (KOMP). It had a 56% return rate in 2020 and is more global in nature than ARKK.

Matthews’ Market Picks

Sticking with a themed pick, Matthews chose funds that are based on clean energy and conservation. The Invesco WilderHill Clean Energy ETF (Fund) is based on the WilderHill Clean Energy Index (Index). The Fund normally invests at least 90% of its total assets in common stocks that comprise the Index. The Index is composed of stocks of companies that are publicly traded in the United States and engaged in the business of advancement of cleaner energy and conservation. This fund was up over 200% in 2020 and most analysts think it could do even better next year. First Trust and iShares also have clean energy ETFs. They include companies in the solar and wind energy, lithium batteries and similar industries.

Casey’s Market Picks

Casey was initially challenged to pick one sector or fund for this week’s discussion. He ultimately settled on Vanguard’s total stock market fund VTI.  This fund seeks to track the performance of the CRSP US Total Market Index. It includes Large-, mid-, and small-cap equity diversified across growth and value styles. VTI did well in 2020; up 19.5%. Holdings include Apple, Amazon, J&J, Berkshire Hathaway, Tesla and more.

We see many investors who try to pick top performing stocks because they want quick wins or best bets. At Wiser, we encourage our clients to build wealth over time. We do this with very low cost ETFs and focus on long-term success, not through short-term rare wins.

Market predictions for 2021

The team is very bullish and excited about market performance in 2021. This is based on coronavirus vaccine efficacy, low interest rates and pent up demand.

There are still some risks next year related to vaccine distribution and acceptance on top of high unemployment related to businesses. But overall, the team is excited about the future and will always bet on the resilience of Americans and our ability to overcome setback.

LINKS:

Learn more about Casey Smith and connect with him on Twitter.

Learn more about Brad Lyons.

Learn more about Matthews Barnett.

CONNECT:

Twitter, Instagram, Facebook, LinkedIn, and YouTube.

Learn more about A Wiser Retirement podcast and access previous episodes.

learn-more-2024

Recent posts

  • what is financial planning
  • 5 Psychological Biases in Financial Decision-Making

Share This Story, Choose Your Platform!

Wiser Wealth Management, Inc (“Wiser Wealth”) is a registered investment adviser with the U.S. Securities and Exchange Commission (SEC). As a registered investment adviser, Wiser Wealth and its employees are subject to various rules, filings, and requirements. You can visit the SEC’s website here to obtain further information on our firm or investment adviser’s registration.

Wiser Wealth’s website provides general information regarding our business along with access to additional investment related information, various financial calculators, and external / third party links. Material presented on this website is believed to be from reliable sources and is meant for informational purposes only. Wiser Wealth does not endorse or accept responsibility for the content of any third-party website and is not affiliated with any third-party website or social media page. Wiser Wealth does not expressly or implicitly adopt or endorse any of the expressions, opinions or content posted by third party websites or on social media pages. While Wiser Wealth uses reasonable efforts to obtain information from sources it believes to be reliable, we make no representation that the information or opinions contained in our publications are accurate, reliable, or complete.

To the extent that you utilize any financial calculators or links in our website, you acknowledge and understand that the information provided to you should not be construed as personal investment advice from Wiser Wealth or any of its investment professionals. Advice provided by Wiser Wealth is given only within the context of our contractual agreement with the client. Wiser Wealth does not offer legal, accounting or tax advice. Consult your own attorney, accountant, and other professionals for these services.

Sign up for our newsletter!

Our latest blogs, podcasts, and educational videos delivered to your inbox weekly.