Making Investments in and post-COVID-19

The global economy has suffered a tremendous blow due to the coronavirus pandemic. During Q1 2020, stock markets encountered the biggest plummet since 1987. With high levels of unemployment and no clear end to the uncertainty being ravaged upon us, consumer spending and business development has understandably taken a nosedive.

It is not all doom and gloom. Economy industry experts are leaning toward a faster fiscal recovery than was originally assumed. They now believe that the recession will be shorter-lived than initially thinking. Expectations of global GDP growth are actually set to recover from -8.6% year on year to 3.0% by Q1 2021.

What does this mean for those with capital who — pre-COVID-19 — were looking to invest? How cautious should they be? What industries are most likely to retain a solid footing? Here we take a look at some of the tips investment sector experts have put out.

  1. Essential Services

During the intense lockdown period, the only people allowed to work were the “essential workers.” Under that umbrella description were: medical institutions, medical supplies, grocery stores and department stores, etc. These industries have increased their market value; shown themselves to be invaluable and thus make a solid investment choice even
during coronavirus.

2. Holistic Wellness

Companies that have been able to offer a holistic wellness program for consumers to access from the comfort of their own homes have been increasing in popularity and success. Many of these firms include those that have adapted to the new stay-at-home reality, offering online home classes, personal training sessions and one-on-one holistic wellness sessions. Companies that have managed to engage clients even though they are not face to face are becoming more successful and thus another good investment choice post-coronavirus.

3. Green Energy Sources

Since there is more energy use than there has been in a long time (with people spending more time inside, thus necessitating an increase in energy resource), companies that are able to offer consumers competitive prices, excellent quality and top customer service are becoming more necessary. Offering these services in an environmentally friendly way, increases the value of their product/service as the need for carbon footprint reduction
during the coronavirus pandemic becomes more apparent.

4. Untouchable Online Stores

Some companies — irrespective of external events — seemingly remain untouchable. The thinking is that if they were popular then, they are popular now too. Some examples include: Apple, Microsoft and Netflix. Some reasons include: they rebounded and resumed work sooner than competitors; their product/service has remained popular and not been as financially impacted by the pandemic; they have the financial banking to weather the storm.

5. Real Estate

While people are unfortunately losing jobs and looking into raising capital, they are considering downsizing. Now is not a bad time to invest in property for those with savings looking to invest.

There is a lot of uncertainty at the current time. For those in the fortunate position of having savings, now is actually a good time to consider investing, as long as it is in the right industry.

Vadim Belyaev is an Ausin-based experienced investor, banker, financier, media manager, & philanthropist, & is recognized as a leading Russian businessman.