3 Market Predictions for the Coming Year

Here’s a prediction: We’re about to get inundated with predictions.

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Here’s a prediction: We’re about to get inundated with predictions.

I like to be early to the party — and to investments — so I’m not going to wait until December 31. We’re all ready to put this crazy year behind us anyway.

In fact, I just rolled out 20 Fearless Predictions for 2021 in the brand new Investment Opportunities issue.

Sure, predictions are about having fun, at least to some degree. But to us as investors, they are more than that.

They can be pathways to making money.

Smart, forward-thinking investors can make incredible returns by spotting world-shaping business trends early and staking their claims.

The rewards for looking “around the corner” and acting boldly can be enormous.

So let’s do a little looking around the corner today, and I’ll give you a sneak preview of what I think’s on tap for 2021 …

If you know me at all, you know how much I value research, so my predictions aren’t wild guesses. They’re also based on facts, trends, and firsthand observations.

They all point me to what I believe will come to fruition. I would say they are part prediction and part forecast.

I can’t give them all away here, but let me share three to get you preparing for what I believe will be a healthier and profitable 2021.

Prediction #1: There will be at least two corrections in 2021.

Wait, didn’t I just say it would be a profitable year?

I did. And I believe it will be.

But you can have a profitable year and still have corrections. In fact, most years have at least one.

Late last year, I predicted “at least one” correction in 2020. (You can read my “10 Fearless Predictions for 2020” here.) Well, there were two.

We will never forget the first one in March — it was the fastest fall into a bear market in history. The second correction took place in September on fears of another wave of COVID-19 and Congress not passing additional stimulus. Both were great buying opportunities, as they typically are, especially in hypergrowth themes that will play out for years to come.

For 2021, I’m upping my prediction to account for increased volatility and the higher probability of two pullbacks of at least 10%. We’ll have a new presidential administration, the vaccine rollout could hit a bump or two, and the stock market could get frothy at times. All are possible reasons for a correction.

And if you’re a regular MoneyWire reader, you can probably guess what I’m about to say next. Every correction will again be a buying opportunity if you’re investing in hypergrowth stocks for big profits over the long term.

Prediction #2: Small caps will outperform.

So far in 2020, small caps and large caps are fairly even. But over the last six months, small caps have crushed the larger stocks.

I believe that will continue in 2021. In fact, I think small-cap stocks are in the early stages of a multiyear bull market.

This is great for investors. Small caps provide many more opportunities at life-changing gains. That’s because there are much greater inefficiencies in how investors value small caps.

But it’s not a rising tide that lifts all boats. To fully capitalize on the trend, you must identify good stocks… which is exactly what we intend to do. I expect we’ll be talking quite a bit about this in the weeks and months ahead.

Prediction #3: A massive infrastructure/clean energy bill will be passed.

The odds of an infrastructure bill should be a full 100%. There shouldn’t be any doubt about it. We should have had one a long time ago, but unfortunately our politicians tend to forget about the needs of the country.

I’ll put my cynicism aside and go out on a limb to say that 2021 will be the year that a major infrastructure bill finally gets passed. And in a Biden administration, the focus will be on clean energy — solar, wind, hydrogen, electric vehicle charging stations, etc.

The House did pass a $1.5 trillion infrastructure bill in July, but it didn’t make it out of the Senate. While the same thing could happen in 2021, I have a strong feeling the spigots will be open all the way and money will be flying.

To prepare for this, you want exposure to sectors that should benefit from all that money sloshing around — like solar, wind, hydrogen, electric vehicles (EV), cement, and engineering firms.

I’ve been all in on the EV trend for a while now. They are the future of transportation, and they will be made possible in large measure by next-generation battery technology.

Insiders are already calling this potential new battery a “paradigm shift” in energy technology. Forbes calls it simply: “The battery that could change the world.”

Trust me, it’s amazing.

This breakthrough device could change just about everything in your life — from how you get around to how you communicate with others.

Without the advancement of solid state batteries, next-generation transportation would be impossible. That’s why we’re investing in the trend, and our Solid State Batteries Portfolio is already up 127% thanks in part to one small company that’s seen its stock climb more than 500% in less than a year.

Folks who get in on this breakthrough now — BEFORE it’s rolled out on a mass scale — will have the chance to be a part of perhaps the single largest legal creation of wealth in the last 25 years.

The is just one example of the best way to build wealth — by investing in long-term hypergrowth companies and holding them through their ups and the downs. That was true in 2020, and it will be true again in 2021.

That’s a prediction I’m highly confident will stay true for years to come.

On the date of publication, Matthew McCall did not have (either directly or indirectly) any positions in the securities mentioned in this article.

Matthew McCall left Wall Street to actually help investors — by getting them into the world’s biggest, most revolutionary trends BEFORE anyone else. Click here to see what Matt has up his sleeve now


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