The coronavirus outbreak has changed the way people and corporations live and work. While some companies and entire sectors of the economy are going through hard times, others, on the contrary, are thriving. Experienced investors see new opportunities in the current situation and are already preparing to make a profitable investment immediately after the end of the pandemic.
Before investing, you need to find a suitable team, such as https://jkr.co/, that will help you put your finances into circulation for long-term income. You should explore areas that have risen significantly during the COVID-19 period and those that have crashed. These two categories will be at the peak of development after the pandemic crash.
Experienced investors believe that the current crisis marks goodbye to the old economy based on oil and banking stocks. It is being replaced by a new technology-driven system.
Promising sectors for investment
- Digital payments
The rise in popularity of online shopping is bringing humanity closer to giving up cash. This is a strong incentive for digital payment companies like Visa and PayPal.
The MSCI Digital Economy Index includes companies related to the digital economy: Visa, MasterCard, and Apple. Between January and May 2020, their shares rose 11.15%.
- Technologies
Investing in new technology projects has been gaining popularity lately. The move to remote work has strengthened the position of cloud service proprietors (Microsoft and Amazon), as well as manufacturers of server hardware.
Stocks in the MSCI ACWI Information Technology Index, including Microsoft, Samsung, and Intel, are up 4.49% YTD.
- Robotics/automation
Automation makes work and home life easier. Seasoned investors believe the pandemic has the potential to accelerate this process as companies look for ways to cut costs.
- Automotive
The high rise of the popularity of electric vehicles during the pandemic caused progress in the automotive industry.
- Investing in real estate
After the end of the pandemic, the construction business will resume and it will again become profitable to invest in real estate.
The most attractive and popular type of investment in the European real estate market is the purchase of apartments. In this case, the advantage is that while property prices are falling, rental prices, on the contrary, are rising. Therefore, by renting out an apartment, you can get a profitable income.
- Healthcare
Healthcare is a huge business. The sector must address many of today’s challenges, from developing a vaccine against the coronavirus to supporting aging societies.
This direction will never lose its relevance for investment because people will always buy health products. It is also expected that innovation will help improve the quality of health care and reduce the cost of it.
The largest investment destination
One of the most promising areas for investment is the touristic segment. Unfortunately, in 2020, he was exposed to high risks, but it is worth remembering that the pandemic will soon end, and everyone will want to fly away on vacation.
The tourism industry is made up of many interconnected infrastructure elements:
- airlines;
- hotels, holiday homes, hostels, and other places for tourists;
- restaurants, cafes, bars, snack bars, and other places of public catering;
- health resort complexes;
- transport and communication services;
- zoos, sports grounds, amusement parks, and other objects of the entertainment industry;
- financial and organizational services;
- rental of vehicles.
You should study the nuances of each category and choose the right one for yourself. For example, three-star hotels are the most promising segment for investors: on the one hand, they are available to a greater number of tourists, on the other hand, their operating costs are much lower than of hotels of a higher category.
