There are going to be three key themes for the coming year, 2021, which will make some ETFs very attractive — something investors should keep an eye on — as per Ned Davis Research’s Senior Portfolio Strategist Pat Tschosik.
Cannabis sector under the Democratic President-elect Joe Biden, the impact of Covid-19 vaccine manufacturing and distribution, and the electric vehicles segment are expected to emerge as the key themes for 2021, Tschosik said, as reported by CNBC.
Legalized Cannabis Under Joe Biden’s Term: Tschosik believes that with the Democratic party at the helm of affairs, cannabis stocks may witness significant tailwinds in 2021. During the elections, four states, namely New Jersey, Arizona, South Dakota, and Montana legalized the possession and use of marijuana.
The Ned Davis Research’s strategist opines that furthering cannabis legalization on a nationwide level will not only be seen as a progressive agenda of the party but also generate a new model for tax collections on a state level.
The analyst recommends buying Global X Cannabis ETF (NASDAQ: POTX), which has gained 44.76% since the election day, and iShares US Healthcare Providers ETF (NYSE: IHF) — up 10% in the same period, to gain exposure to the sector.