My 2021 Market Outlook Means These Stocks Are “Must Buys”

Shah was bullish throughout 2020, and he's expecting this year to be even bigger as the pandemic ends. He's said it's entirely possible for the Dow to hit 35,000 in the next 12 months. To help you capture and capitalize on that incredible potential, Shah's put together a list of stocks to buy in 2021…

There's an old adage that the sequel is almost never as good as the original.

That's been proven time and again with movies, theater, music, and books.

But not the stock market. At least not this stock market.

After a nine-month stretch during which stocks rebounded more than 65% – and set record highs an average of every eight trading days – I'm predicting one hell of an encore in 2021.

I'm talking about a sequel that absolutely smokes the original.

Here's what you need to know about where stocks are headed in the new year, the specific stocks I'm watching – and how to rake-in piles of easy money…

Look Where We've Been to See Where We're Going

Truly great sequels like this one don't require a drawn-out introduction. But a little bit of backstory can do some "scene-setting."

So before I "handicap" what I'm predicting for 2021, a quick look back at 2020 is in order.

Why? Because 2021 is going to ride the waves of the rebound ignited in 2020. I'm talking about the catalysts that fired up investors last year, the trends that were sown there, and the opportunities that bloomed like wildflowers. Not only are those trends all intact – they're in full bloom and spreading.

We came into 2020 with one of the strongest economies in recent memory and a momentum market that had seen 2019 gains of 23.76% in the Dow Jones Industrial Average, 30.43% in the S&P 500, and 37.89% in the tech-focused Nasdaq.

As 2020 debuted, stocks continued their run – and made all-time highs in February.

The market was trending higher, and there was little to stop it. An existential threat to mankind, however, is no small impediment: COVID-19 dynamited the uptrend.

Ironically, it also provided the solution.

The $1,200 "stimulus" checks and $600 weekly jobless benefits were designed as "distress relief" payments, but ultimately, they ended up as portfolio "seed money."

This cash ignited a bounce-back bull market. And it transformed the way we invest along the way.

With a speed even I found truly stunning, millions of new brokerage accounts were opened across the country. Robinhood Markets, the originator of commission-free trading and what I've nicknamed the "Fractional Shares Revolution," grabbed up a record $3 million in new accounts in a mere three months, according to industry statistics. E*Trade, TD Ameritrade, Charles Schwab, and Fidelity opened up millions of new accounts, too – lassoing the pandemic-housebound, middle-aged, and mostly younger Americans who were ready and eager to dive into stocks.

That's where the buying came from at the end of March: These "retail renegades" ignited an uptrend that rescued stocks, and millions of Americans, from the bear-market abyss.

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My biggest prediction for 2021 is also one of my boldest. I'm looking for a $353 billion "capital wave" to possibly plow into five specific companies over the next 18 months.  more

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