Investment

5 High-Potential Canadian Investment Ideas for 2021 – The Motley Fool Canada

Published

4 years ago

January 14, 2021

Despite the coronavirus pandemic ravaging the world for most of 2020, many stocks ended the year near their all-time-highs, which makes it a little more difficult to find high-quality investments that can earn similar returns in 2021.

Currently, most stocks that offer value do so because they are being impacted tremendously and therefore still have a tonne of risk.

These companies can offer some upside potential as the economy recovers from the pandemic. However, you’ll want to diversify away from solely playing the coronavirus recovery.

Luckily, there are several investment themes to choose from when considering what stocks to buy in 2021. Here are the top five.

Pot stocks will be great long-term investments in 2021

Pot stocks have been quiet the last few years since their incredible rally ahead of legalization in Canada. Pretty early on, after the initial bubble burst, it was pretty clear that pot stocks still offered investors value.

The chances for massive overnight gains went away. However, pot stocks still offered long-term investors considerable potential. So far, in late 2020 and already in 2021, it looks like the cannabis industry is finally starting to consolidate.

Prices are coming down, new edibles and technology are reaching markets, and these companies are finally showing signs of reaching stable long-term profitability. Plus, the Canadian companies have also gotten a boost from election results in the United States.

So if you’ve been on the sidelines waiting to make an investment in the cannabis industry, 2021 may finally be the year you start to see action.

Bitcoin is gaining popularity

You could also consider an investment in cryptocurrency stocks for 2021. Whether you buy your cryptocurrency outright or decide to buy cryptocurrency stocks, there is a lot of potential in the industry in 2021.

Cryptocurrency is highly risky, though, so it’s crucial you do a fair share of research on your own before you decide what you want to invest in.

With so many investors jumping on the Bitcoin bandwagon as of late, there is massive potential for investors going forward, which is why it’s a top industry to invest in for 2021.

Psychedelic stocks could continue to boom in 2021

Another industry to consider an investment in for 2021, much like pot stocks, is the psychedelic medicine industry. The psychedelics industry has a lot of the same qualities cannabis had leading up to legalization.

In addition to becoming widely popular amongst retail investors as of late, some big-name investors such as Kevin O’Leary have also made investments in the space.

One of the leading companies in the industry has been Mind Medicine Inc. The stock is up more than 200% in the last three months, but at a market cap of just $1.2 billion, it could offer a lot more upside for investors in 2021.

Renewable energy offers several opportunities

Renewable energy is another industry that will carry over its momentum from 2020. The need for environmental change only continues to become more urgent.

And with Joe Biden taking office next week as President of the United States, you can expect major growth potential from the green energy industry.

This includes renewable energy generators such as TransAlta Renewables, as well as companies that sell equipment allowing other businesses to lower their carbon footprint, like Xebec Adsorption.

Tech stocks will be great investments again in 2021

Finally, there’s always opportunity in tech stocks. There are several subsectors in the tech industry offering exciting prospects for growth in 2021 and beyond. From artificial intelligence to the massive growth in e-commerce, plenty of tech stocks provide superior growth potential over the next few years.

While there are several top tech sectors to invest in ahead of 2021, 5G stocks have some of the most potential. 5G technology will open up millions of new technological possibilities making it one of the best investments you can make in 2021.

If you’re looking for some 5G stocks to consider, check out our FREE recommendations!

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5G is one of the greatest arrivals in technology since the birth of the internet. We could see plenty of new wealth-building opportunities in 2020 that would potentially dwarf any that came before them.

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Fool contributor Daniel Da Costa has no position in any of the stocks mentioned.

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Economy

S&P/TSX composite down more than 200 points, U.S. stock markets also fall

Published

1 week ago

September 6, 2024

Anne Joseph

TORONTO – Canada’s main stock index was down more than 200 points in late-morning trading, weighed down by losses in the technology, base metal and energy sectors, while U.S. stock markets also fell.

The S&P/TSX composite index was down 239.24 points at 22,749.04.

In New York, the Dow Jones industrial average was down 312.36 points at 40,443.39. The S&P 500 index was down 80.94 points at 5,422.47, while the Nasdaq composite was down 380.17 points at 16,747.49.

The Canadian dollar traded for 73.80 cents US compared with 74.00 cents US on Thursday.

The October crude oil contract was down US$1.07 at US$68.08 per barrel and the October natural gas contract was up less than a penny at US$2.26 per mmBTU.

The December gold contract was down US$2.10 at US$2,541.00 an ounce and the December copper contract was down four cents at US$4.10 a pound.

This report by The Canadian Press was first published Sept. 6, 2024.

Companies in this story: (TSX:GSPTSE, TSX:CADUSD)

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Economy

S&P/TSX composite up more than 150 points, U.S. stock markets also higher

Published

2 weeks ago

August 29, 2024

Anne Joseph

TORONTO – Canada’s main stock index was up more than 150 points in late-morning trading, helped by strength in technology, financial and energy stocks, while U.S. stock markets also pushed higher.

The S&P/TSX composite index was up 171.41 points at 23,298.39.

In New York, the Dow Jones industrial average was up 278.37 points at 41,369.79. The S&P 500 index was up 38.17 points at 5,630.35, while the Nasdaq composite was up 177.15 points at 17,733.18.

The Canadian dollar traded for 74.19 cents US compared with 74.23 cents US on Wednesday.

The October crude oil contract was up US$1.75 at US$76.27 per barrel and the October natural gas contract was up less than a penny at US$2.10 per mmBTU.

The December gold contract was up US$18.70 at US$2,556.50 an ounce and the December copper contract was down less than a penny at US$4.22 a pound.

This report by The Canadian Press was first published Aug. 29, 2024.

Companies in this story: (TSX:GSPTSE, TSX:CADUSD)

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Investment

Crypto Market Bloodbath Amid Broader Economic Concerns

Published

1 month ago

August 5, 2024

Harry Miller

The crypto market has recently experienced a significant downturn, mirroring broader risk asset sell-offs. Over the past week, Bitcoin’s price dropped by 24%, reaching $53,000, while Ethereum plummeted nearly a third to $2,340. Major altcoins also suffered, with Cardano down 27.7%, Solana 36.2%, Dogecoin 34.6%, XRP 23.1%, Shiba Inu 30.1%, and BNB 25.7%.

The severe downturn in the crypto market appears to be part of a broader flight to safety, triggered by disappointing economic data. A worse-than-expected unemployment report on Friday marked the beginning of a technical recession, as defined by the Sahm Rule. This rule identifies a recession when the three-month average unemployment rate rises by at least half a percentage point from its lowest point in the past year.

Friday’s figures met this threshold, signaling an abrupt economic downshift. Consequently, investors sought safer assets, leading to declines in major stock indices: the S&P 500 dropped 2%, the Nasdaq 2.5%, and the Dow 1.5%. This trend continued into Monday with further sell-offs overseas.

The crypto market’s rapid decline raises questions about its role as either a speculative asset or a hedge against inflation and recession. Despite hopes that crypto could act as a risk hedge, the recent crash suggests it remains a speculative investment.

Since the downturn, the crypto market has seen its largest three-day sell-off in nearly a year, losing over $500 billion in market value. According to CoinGlass data, this bloodbath wiped out more than $1 billion in leveraged positions within the last 24 hours, including $365 million in Bitcoin and $348 million in Ether.

Khushboo Khullar of Lightning Ventures, speaking to Bloomberg, argued that the crypto sell-off is part of a broader liquidity panic as traders rush to cover margin calls. Khullar views this as a temporary sell-off, presenting a potential buying opportunity.

Josh Gilbert, an eToro market analyst, supports Khullar’s perspective, suggesting that the expected Federal Reserve rate cuts could benefit crypto assets. “Crypto assets have sold off, but many investors will see an opportunity. We see Federal Reserve rate cuts, which are now likely to come sharper than expected, as hugely positive for crypto assets,” Gilbert told Coindesk.

Despite the recent volatility, crypto continues to make strides toward mainstream acceptance. Notably, Morgan Stanley will allow its advisors to offer Bitcoin ETFs starting Wednesday. This follows more than half a year after the introduction of the first Bitcoin ETF. The investment bank will enable over 15,000 of its financial advisors to sell BlackRock’s IBIT and Fidelity’s FBTC. This move is seen as a significant step toward the “mainstreamization” of crypto, given the lengthy regulatory and company processes in major investment banks.

The recent crypto market downturn highlights its volatility and the broader economic concerns affecting all risk assets. While some analysts see the current situation as a temporary sell-off and a buying opportunity, others caution against the speculative nature of crypto. As the market evolves, its role as a mainstream alternative asset continues to grow, marked by increasing institutional acceptance and new investment opportunities.