Brokerage

In October 2015, the alternative-data company Eagle Alpha published its research on GoPro, the popular action camera company, with much of its findings having been determined by using web-scraping techniques. “The data from US electronics websites pointed to potential weakness in GoPro revenue for the third quarter of that year,” Eagle Alpha noted.

Thanks to key advances being made within the realm of fintech (financial technology), the term democratisation of finance has become perhaps the most important of all from a global-development perspective in recent years. But truth be told, the actual democratisation process can mean different things to different people.

The COVID-19 pandemic has made 2020 a truly singular year. With a deep global recession resulting from strict lockdown measures being implemented throughout much of the world, there has been little for investors to cheer. But with signs that the worst may be mostly behind us, an increasing number of opportunities will undoubtedly present themselves as we move into 2021.

The Digital Age has transformed every corner of the financial world, including investments. Once the exclusive domain of the wealthy, investing is now open to anyone, thanks to micro-investing platforms. Equities have demonstrated comparatively strong returns in our low-interest-rate environment and are well worth the attention of even those with only some change to spare. What are the most promising avenues available to the small investor keen on breaking in?

Natural resources offer investors endless and rewarding opportunities. Today, one of the most interesting segments is rare earths, a group of 17 minerals used in trending products from electric cars to smartphones. China has the corner on this market, despite US efforts to muscle in. Even though rare-earth prices have taken a hit during the pandemic, investors would still do well to consider adding these versatile minerals to their portfolios.

If crises such as the COVID-19 pandemic are good for anything, it is in sharpening the focus towards what really matters. For many, the COVID-19-related crisis has put into perspective the requirements and urgency needed to reach longer-term sustainability targets. With respect to business, the pandemic has also served to highlight the very real impact that environmental, social and governance (ESG) factors can have on the bottom line.

Investors are bombarded with stories regarding how investment opportunities will pan out, but not all are good; some are bad, and a few are fairy tales. How is an investor to recognize the good ones? Much depends on the quality of the source, often the investment manager—who needs to be a professional storyteller of stories worth telling. But how to achieve this ideal in a less than ideal world?

Investment is no longer only about making a positive financial return. Investment options are growing, as many investors look to balanced portfolios that bring not only monetary benefits but environmental and social gains for the causes about which they care. As opportunities to invest in assets following ESG criteria multiply, the three main factors that make this investment opportunity rewarding for all include geography, the blue economy and private-sector participation.

“Two are better than one” is increasingly the case in investing, as humans team up with computers to reach the best investment decisions. Quantamental investing combines quantitative and fundamental strategies to make the most of both approaches, and it is finding increasing adoption, especially among traditional fund managers finding themselves at a disadvantage in the Digital Age. If done right, fusing the traditional with the technological does bring stellar returns.

Due to the unique challenges that have arisen from the pandemic-induced lockdowns, 2020 has been a tough year for many industries around the world—not least for the auto industry. As COVID-19 cases continue to emerge in earnest, government restrictions that remain in place to this day throughout much of the world