Several tech stocks generated spectacular triple-digit percentage returns in 2020 as the coronavirus pandemic accelerated the digitization of enterprises. However, you shouldn’t expect such impressive gains to repeat to the same extent in 2021 since their valuations have likely become stretched. It’s a much wiser strategy to invest in stocks with a long-term horizon in mind rather than trying to find some short-term gain.
If you have your emergency fund fully stocked, your bills are all paid, and you have the wherewithal to set aside $5,000 to buy stocks that you intend to hold long term, you should consider these three tech companies with the potential to gain big. Here’s why.
The trend of private and public entities digitizing their operations and the resulting increase in demand for computing infrastructures shows no sign of slowing for many years to come. Nor does the potential for bad actors (and nefarious governments) to exploit vulnerabilities in those computing operations.