Which Industries Will Grow the Fastest in 2021?

AUSTIN, Texas - April 23, 2021 - PRLog -- Will the economy rebound in 2021?

Corporate executives seem to think so.

According to the news site Axios, over 80% of CEOs participating in the quarterly Conference Board business roundtable see improved economic conditions in the coming six months, the highest confidence level since 2004.

Corporate leaders point to the recent success of vaccination programs as a major reason for renewed optimism.

Interest rates are also exceptionally low, which has made it easier for businesses and governments alike to finance debts. Inflation also remains low, for now at least, in part thanks to a drop in energy prices. (More on the specter of a return to inflation later…) Many analysts also believe that the Federal Reserve isn't getting enough credit for assisting the economy during the downturn in 2020, including providing ready capital for jittery markets.

One negative for exporters is that we are in a strong dollar environment. The dollar's continued strength has been boosted by investors across the world seeking a safe haven during difficult economic times. While this makes purchasing imports cheaper for US consumers, it does hurts American companies, such as manufacturers, seeking to sell their products overseas.

Wall Street And Venture Capital Investors Anticipate High Growth Across The Board In 2021

The optimism of CEOs is shared by the stock market. Long seen as a leading economic indicator, the stock market has reached many new record highs this year.

Earlier this week, the Dow Jones Industrial Average closed at 33,527.19, a record high. The S&P 500 also hit a record closing high of 4,077.91, while the tech-heavy Nasdaq Composite climbed 1.7% to 13,705.59, not far off from its record high closing of 14,095.47 on February 12, 2021.

Can The Recent Gains In The Stock Market Help Us Identify Which Industries Will Grow The Most In 2021?

The short answer is no because investors are busy buying up just about everything on the markets, from companies that prospered during the pandemic – such as the Silicon Valley FAANG giants (Facebook, Amazon, Apple, Netflix, and Alphabet) — to stocks that were heavily battered by the pandemic, such as cruise lines.

If we were to pick one segment that stands out, it would be industries related to electrification, such as battery producers and electric car manufacturers or fintech stocks.

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