Why I’m investing in FTSE 250 stocks in 2021

first_img See all posts by Manika Premsingh Simply click below to discover how you can take advantage of this. Why I’m investing in FTSE 250 stocks in 2021 Our 6 ‘Best Buys Now’ Shares The FTSE 250 index is up almost 2% on average in February compared to January. The FTSE 100 index, on the other hand, is down around 1.5% over the month.I think there is a reason for this. 5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…Why has the FTSE 250 index performed better?The brakes just came off the UK economy.The FTSE 250 index’s constituent companies tend to be far more UK focused than FTSE 100 companies, which are likely to be large multinationals. A Brexit solution was finally found at the end of last year after years of limbo. With greater clarity on the regulatory environment in the post-Brexit world, businesses can plan better and even project their outlook more confidently. While there are still operational challenges underway, and a deal still has not been struck on financial services, there is no denying that progress has been made. This adds to the financial markets’ buoyancy seen since news of vaccine development first broke in November. The FTSE 250 index has risen over 18% since October, compared to a 13% increase for the FTSE 100 index. More good news for the FTSE 250I think there is more to come. The announcement of the phased end to the UK lockdown earlier this week can guide the FTSE 250’s movements in the coming days. On the other hand the FTSE 100 index is expected to be guided more by how the corona-crisis is being resolved globally. Many FTSE 250 stocks would make a good investment I believe. Including the following two. #1. Bellway: Promising 2021The FTSE 250 home-builder Bellway was confident of its outlook for the year in its latest trading update earlier this month. It said that it has a “sizeable forward order book”. Despite the pandemic, the property market has held itself up, with government support. The potential latest extension of the stamp duty holiday is another positive in this regard. It sets real estate companies like Bellway for at least half of 2021. As the economy starts picking up post-lockdown, there may be some softening as the real impact of the corona crisis plays out. But it will be partly mitigated by a strong first half. #2. SIG: Renovation is backAnother FTSE 250 stock I like is the building products distributor SIG, which expects to bounce back soon. The company suffered in the first half of 2020 because of the pandemic. But things have been getting better for it recently. In early January, it released a positive trading update where it talked about a strong recovery in the second half of 2020. Investors noted this, making it the biggest FTSE 250 gainer that day. Much like Bellway, SIG will benefit from both the end to the lockdown and the extension of the stamp duty holiday. That makes it a stock I’d consider buying. There are risks to investing here, of course. The lockdown-lift may not go as planned. The economy may not come back smartly post lockdowns. And we actually be in for a prolonged slowdown. But all of this is in the realm of conjecture. Both anecdotal evidence and projections suggest otherwise. I am hopeful. Manika Premsingh | Saturday, 27th February, 2021 Enter Your Email Address Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee.center_img I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. Manika Premsingh has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner.But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Image source: Getty Images “This Stock Could Be Like Buying Amazon in 1997” Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge!last_img

Leave a Reply

Your email address will not be published. Required fields are marked *