Xela Finance

2020 was a wild year for the stock market, 30% 40% 50% swings. It was very easy to make money and pretty difficult to lose money, predominantly after March. I believe the first few months of 2021 will be pretty similar, here are a few ideas where there could be opportunities for easy money in 2021.

Numero uno – SPAC’s. These have been gold dust in recent months. You get all the hype of an IPO but with the opportunity with getting in at a low price. The most recent SPAC I have invested in is CCIV. This company is due to merge with Lucid Motors, a company built by a former Tesla Executive and backed by a billionaire friend. Not only that, the Saudi royal family has directly invested into the company as well. It is A LOT of serious backing. These rumours of the merge are still ongoing but personally I feel it is unofficially official, and at the moment I am up around 45%. Just imagine what happens when they make the announcement official.

There have been numerous opportunities in SPAC’s from all kinds of industries, space travel, EV’s, Home delivery, digital software etc. I believe this trend still has legs to it and a lot of investors are going with the strategy of investing in as many SPAC’s as possible which are valued as close to the net asset value (NAV) as possible. This way if the SPAC doesn’t merge with anyone, they won’t lose money because they have invested at the bare minimum of what the company is worth on paper.

Idea 2 is – wider trend investing – This is where you look at trends in the market that are speculative and could potentially make a quick buck. I wouldn’t recommend this because it is very risky. An example would be, the recent spike in volume in GME, AMC and NOK. This caught fire because of the massive interest on WallstreetBets Reddit page which led to a huge short squeeze in these companies. If you can stomach the risk and don’t mind losing all your capital, this is a method that can be used. Simply by keeping an eye on financial social media you can get a good idea of what is trending and where volume is heading. I believe that the next trend could be to do with electric car batteries and chips as there is a massive trend with EV’s at the moment, it only makes sense for there to be ‘fringe trends’ one of which would be the components that go into making EV’s, hence the batteries and chips.

I could be wrong but I do confidently believe that there will be hundreds of opportunities this year to make money in the market especially with the huge increase of retail investors, stay focused and keep up to date with financial news on social media, it’s the easiest way to spot trends.

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