Super cycle 2021: is social trading worth it?
Social trading is a trend that 2021 will definitely continue to grow. More and more traders are choosing to monitor the activity of others, paying particular attention to traders who are making big profits. Successful traders can be tracked at eToro, one of the world's largest social trading providers. This means that you can see how they are trading. Complete trading strategies can be adopted and copied with one click.
The year 2021 is a very special one on the stock exchange. After the first phase of the Corona crisis, there are many investment opportunities that can be used. This says that high profits are tempting. EspeciallyPlants in the raw materials segment seem to be in great demand. You can see that from the fact that the demand for commodities has literally exploded and many traders have specialized in it. Anyone who works in an industry that is very resource-intensive will quickly realize that there are major differences to other industries and that a lot can happen in any case.
Homeowners are also noticing that the prices for raw materials are rising significantly.Timber, concrete and other materials currently cost significantly more than was the case before the Corona crisis. A roofer who calculates a quote for a complete house will find that prices can no longer be maintained for several weeks. There are many building materials that are now costing more than before the crisis, as demand is exploding around the world. After everything went down to 0 in Corona year 2020, things are now looking up again.
Various raw materials are generally in demand and popular. This means, for example, that crude oil is much more in demand than it was during the crisis. At that time, crude oil cost 40 dollars per barrel or there was more than it was ever offered. Today the price is significantly higher again and is quoted atover 70 US dollars per barrel. Fakt ist, dass Rohöl definitiv mehr gefragt ist, als es während der Krise der Fall gewesen ist. Ob die Preise über das jetzige Niveau hinaussteigen werden, ist derzeit noch vollkommen offen.
The super cycle could help prices of commodities like oil continue to rise. This is due to the fact that production or funding has not yet expanded to such an extent that demand can definitely be met. Looking back over several years, a lot could definitely happen. Crude oil was less in demand during the Corona crisis, but thedemand is currently higher than ever. This means, of course, that the transition from oil to other commodities is different.
There are companies like Shell and Total as well as BP that also rely onelectricity from e.g. ecological sources. Other companies have dedicated themselves to the classic production of oil. In Russia, the important raw material is still heavily relied on. In the long run, it is conceivable that much can be achieved with oil, but not all industries are interested in the oil business.
Copper, palladium, but also nickel are among the raw materials that will be in demand in 2021 and will continue to be in demand in 2022 and the years that follow. This is because raw materials are used for batteries, for example. In the course of electromobility, a lot of nickel is required. The raw material is promoted by various large corporations.
Nickel, palladium and raw materials in the super cycle ?!
Corporations such as Vale, BHP and also Rio Tinto or Nor Nickel are the major promoters of raw materials worldwide. If you look at the company's share price, you will quickly notice that these companies make a lot of sales and that the shares have increased significantly in value. This shows that a lot could happen here in the future. As a rule, these are companies that are very happy to pay dividends andPay dividends to investors.
TheBHP homepage provides detailed information on how the free cash flow has developed. At eToro, the various securities from these segments can be traded. The broker is better positioned than most of its competitors. The costs are low, the spread is small and this shows that a lot is possible at BHP.
BHP as well asVale and Rio Tinto pay out the dividend about two to three times a year. The companies' profits are increasing mainly because the demand is so high and at the same time the price per unit is rising significantly. This means that you can write significantly more profit than in the past. The shareholders share in these profits. Nevertheless, a look into the future should be thrown.
The companyVale is listed on the stock exchange in Brazil and some ADRs can also be bought. Here you can see that very good figures can be written in the coming years. It is currently still completely open and free to define whether it will really continue like this for several years.
Commodity companies could definitely continue to grow and increase in value in the next 3 to 5 years. In general, it can be said that demand remains stable or continues to rise. Vale and BHP andthe Rio Tinto group are likely to be the biggest beneficiaries of this rally. Raw materials are currently in demand because their extraction and production has been particularly high in recent years and then dropped to practically 0. Now the demand is skyrocketing again, which of course can also mean that a lot can happen and that prices are rising. High demand and production that is already very strong can mean that prices will continue to rise for a while.
Super Cycle: What does it mean?
The Super Cycle can mean that some industries are currently in particularly high demand, or that there is a great deal of demand for products in these industries. On a multi-year horizon, demand could continue to grow, leading to companies posting plenty of profits.Super cycles occur in the economy especially after crises.
The Corona crisis has not yet been processed and it is far from over. While there are vaccines and many people are already vaccinated, this does not automatically mean that everything will work as hoped. In many countries it is not yet the case that many people have been vaccinated. In India and other large countries in particular, it is possible that the crisis will continue for a very long time. The vaccines are currently in large numbers which means there is no problem with the dates.
Vaccines from several manufacturers are offered worldwide. It should be noted that the super cycle shows that the economy continues to grow even in the times of Corona, which is of course a lot of fun. Corona is a special and strenuous time in which a lot is demanded. Nevertheless, one managed to grow even under these circumstances and to show that a lot is possible
The super cycle should last several years and theInflation could increase significantly during this time. This means that due to the rising prices, you get significantly less for your money than was usual in the past. In general, it is possible that prices will fall again, of course, but this will probably take quite a while. The super cycle is just in its infancy in 2021. This means that further price increases are possible in the coming months. Raw materials are needed for production and that is the reason why the demand here is particularly high.
It is currently completely open whether the super cycle will only affect raw materials or also other materials, services or products. That means there's still a lot that can happen here if you decide to invest. A super cycle cannot be detected that often and in practice can occur every few decades. It is currently developing globally and not just locally, which of course can also be an option. Supercycles are particularly interesting around the world as it can be seen as prices and demand continue to rise. It is difficult to predict how long they will last.
eToro offers regulation in the super cycle environment
Regulation is one of the central elements of the broker eToro. This means that this broker acts in a regulated environment and is regulated and controlled by the responsible authorities. Regulation is definitely taken seriously at eToro and shows that they really care that traders are doing well. Traders are paying more and more attention to the fact that brokers are regulated so that everything is done properly.
TheCyprus authorities ensure that everything runs correctly if you choose the broker eToro. From a perspective of several years, the broker eToro could be used very well. In general, it should be noted that eToro is growing and that the broker has positioned itself as theworld's largest provider in the social trading segment.
The broker is of course popular when it comes to forex andCFD trading. This means that a lot can definitely happen here if you invest in the right products and positions. eToro is expected to continue growing for several years. The trading activities of particularly active and successful traders can be easily followed online. A lot can be taken over with just one click. This says that complete strategies can be copied.
At eToro, however, this is not necessarily a guarantee of success. It is possible that the broker also offers products with which no profit can be made. The risk is sometimes very high and should be examined carefully. In general, a healthy diversification of the investment is definitely worthwhile.