Two important lessons to learn from 2020 stock markets are to keep a long-term perspective and the belief that markets are forward-looking. Heading into 2021 we look forward to hopefully a year when the pandemic subsides, lives return closer to normal, and economic recovery picks up. Below are the highlights of the sectors with stock in focus for the year 2021.
1. Semiconductor/Chips: The global Semicon industry suffered its worst year in almost two decades and picking up to return to growth in 2020, according to World Semiconductor Trade Statistics. The group sees Semicon sales accelerating further in 2021. The fastest-growing category of semiconductors in 2021 is memory chips, with forecast growth at 13.3%. As electric vehicles, smartphones, 5G equipments etc all need chips, chips are in great demand. The largest chipmaker in the world is Taiwan Semiconductor Manufacturing(TSM), and other top players including Advanced Micro Devices(AMD), Nvidia(NVDA), Qualcomm(QCOM), Apple(AAPL), and ASML(AMSL). Or Semicon Sector ETF SOXX.
In Hong Kong, related top players including SMIC(981) Sunny Optical(2382), AAC Tech(2018) or Hang Seng TECH Index ETF(3033)
In Singapore, related tech players including AEM, Frencken, UMS
2. Food Delivery: Virus won't go away at least for quite some time, and home office will be the new norm. It's expected food delivery companies will do well. Companies in focus including Uber Tech(UBER), DoorDash(DASH).
3. Online Shopping and Logistics: Amazon(AMZN), Alibaba(BABA, or 9988.HK), Pinduoduo(PDD), ContextLogic(WISH), WISH is called the U.S version of China's Pinduoduo, just launched its IPO on Dec 16, it traded underwater to its IPO price US$24. and also FedEx(FDX) and United Parcel Service(UPS)
4. Remote Working: Zoom Video Communications( ZM), Cisco System(CSCO), Slack Tech(WORK), Alphabet(GOOGL), Facebook(FB), Microsoft(MSFT)
5. Online Education: TWOU(2U), Stride(LRN), 17 Education(YQ), GSX Techedu(GSX), TAL Edu(TAL) New Oriental Edu(EDU)
Hong Kong related stocks: New Oriental Edu(9901), Koolearn(1797)
6. Remote Healthcare: Teladoc Health(TDOC), American Well(AMWL), Veeva System(VEEV)
7. Online Entertainment: Netflix(NFLX)
8. Consumer Staples: Wal-Mart Stores(WMT), Costco Wholesale(COST), Procter & Gamble(PG), or SPDR Consumer Discret Sector ETF(XLY)
In Singapore, related stocks Wilmar.
9. Insurance and Wealth Management technology companies: Lemonade(LMND) Lufax(LU)
10. New Energy Vehicle companies: Tesla(TSLA), NIO, XPeng(XPEV), Li Auto(LI)
In Hong Kong, related stocks Ganfeng Lithium(1772) which is the top battery supplier to TSLA and other electric car companies.
In Singapore, there are two companies with very unique business thus give them unbalanced advantages: Nanofilm and Credit Bureau Asia.
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