While only two weeks into 2021, the new year has had an explosive start. We’re closely monitoring these 7 trends in Ursa portfolios as we look towards the rest of the year. No Ursa account yet? Download Ursa here!
1. #COVIDRecovery 😷
Vaccines, Stimulus and Reopenings, Oh My! With economic recovery optimism rising, we expect market swings on both progress and delays. Sectors like Retail 🛍 , Travel 🛩 and Banks 🏦 want COVID-19 in the rearview mirror ASAP!
2. #BlueWave 🌊
Democrats winning both GA Senate seats sets up a much friendlier Congress for Biden’s agenda. We’re looking for more fiscal stimulus, increased infrastructure spending and better coordinated COVID-19 management. Sectors like Banks 🏦 , Consumer 🛍 , and Industrials 🏭 to benefit.
3. #YOLOMoney 🤑
Retail investors accounted for 20% of order flow in 2020. That’s double from a decade ago and contributed to all-time highs in the market. The retail surge likely driven by both more accessibility from apps like Robinhood and particularly increased Millennial savings during COVID-19. Tech 💻especially has benefitted. Does retail trade flow continue as the pandemic restrictions lift?
4. #Flight2Safety 💸
While Growth stocks soared in 2020 (+30%), Value stocks traded mostly sideways. We’ve seen the opposite in so far in 2021 (Value +3% YTD & Growth flat) and expect the trend to continue. We expect more rotation into Value plays with attractive valuations and margins of safety.
5. #StreamingWars 🎥
While a year ago, Netflix was the undisputed Streaming King 👑 , but now we have Disney Plus, HBO Max, Peacock all gaining ground. This year the competition really heats up with streaming blockbuster releases and tons of new content. Grab some 🍿 and watch it play out (from home… 😝 ).
6. #RegBigTech 👩⚖️
Should Big Tech 💻 be regulated? That’s a question multiple states and countries are taking to court. With recent action taken during Capitol Riots, Big Tech responsibility for content is growing. Big Tech also accounts for the 5 largest companies in the stock market. They’re getting a little too big to claim start-up culture…
7. #Cybersecurity 🚨
Cyberattacks are front and center following the pervasiveness of the SolarWinds hack. However, even the COVID-19 forced WFH movement is creating a slew of new cybersecurity issues for companies formerly centralized in an HQ. We expect an increasing focus on Cybersecurity as a growth market.
While not an exhaustive list of the trends we’re tracking, these are definitely top of mind as we begin 2021. Here’s to a great year! 🥂
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As of the publish date of this article, Ursa portfolios may own NFLX, DIS, T. The stocks mentioned in this article may cease to be owned by Ursa portfolios at any point. This article is the opinion of the author. Anything within this article should NOT be considered an investment recommendation or advice. See Ursa’s full disclosures here.