What will be the Financial Market Trends in 2021?


After a tumultuous year in 2020, thanks to the coronavirus effect on the economy, we can predict that this year should also be quite hectic, when it comes to financial markets. It will be important to keep an eye on a few trends, so that we can react rapidly, if they end-up affecting the markets strongly. Here is what we should continue to monitor, in the next months.

Investing on the Trade Markets

It is important to remind ourselves that investing on financial markets should not only be about following trends. There needs to be a long-term strategy, if we want our investment to grow. We also need to select the best financial platform where we can make our trades. If the service isn’t efficient, it could be very costly on any normal day, when trading on a financial market. Here is where you can find the best online trading platform UK.

Will the US Dollar keep falling?

People who have been investing on financial markets for a while, all know that the US dollar has been considered a safe-haven asset. However, for some reason, it was not the case in 2020, as COVID-19 was devastating the economies of the world. The election played an important part in this new data, but the most important element is the stimulus of over $2 trillion that was voted. Though it may help the economy, it always has a downward size to the value of the currency.

GBP and UK Index on the rise?

There is no doubt that the UK is showing quite a success rate, when it comes to their vaccination campaign. That is something that could greatly influence buyers, as they would see the UK as a safer place to invest, at least temporarily. Therefore, the GBP and UK Index could be on the rise in the foreseeable future. But all things need to be handled with care, as we have already seen an important increase, again, of coronavirus cases, created by the Indian variant, in the UK.

Is there a Technology Bubble Problem on the Horizon?

In the COVID-19 year that was 2020, the tech stock went on the rise. Their growth made a lot of investors happy and brought new ones to join their rank. But now that we are leaving the sanitary crisis behind, is there a chance that we will see this investment pocket fold on itself? It is a question that investors do need to keep in mind, without a doubt.




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Watch My Wallet has everything you need to know about money, written by real people who’ve been there. Inspired by the philosophy of Early Retirement Extreme (ERE), our goal is to make informed decisions about our finances in order to achieve financial independence.