Investing in a Post-Pandemic World
The coronavirus disease had such a drastic impact globally that it will no doubt be a topic of discussion in mainstream media and among simple people exchanging their views and opinions over coffee for the years to come. Business owners who had to shut down operations and investors who came out of the pandemic unscathed are looking ahead on how to turn the economy around once they rebuild and reopen.
When the world finally crushes COVID-19, governments, businesses, and consumers will never be the same again. Behaviors and trends will change; and this will cause economies to shift to something humankind has never seen before. New markets will emerge while existing ones will be put on the backburner.
Below are some growth areas that will have lasting effects all over the world after the pandemic. This should give you some ideas on where to put your money next and where to invest.
Consumers will care more about disaster preparedness.
Many people did not anticipate how bad it would get with the coronavirus. As soon as they realized that the deadly disease would keep them stuck at home, they began scrambling for food and other important supplies that one would need in case you had to limit your movement or completely avoid going out. Items that were sold out in local supermarkets included alcohol, face masks, rice, formula milk, and more. Overseas, people hoarded toilet paper, flour, disposable diapers, and Nintendo Switch units among others.
If you’re an investor and you’re suddenly thinking that you will benefit from investing in stocks for companies with these consumer staples, then you have a rational reason to do so. However, you also need to think about how these products are being used. When people hoard these things in their cupboards, they are probably using them at the same rate, so it would take them longer to go back to the store and purchase the same item again.
Online and stay-at-home purchases will increasingly become a part of everyday life.
Perhaps the most evident impact of a change in consumer behavior after everyone became aware of COVID-19 is that e-commerce has definitely made unprecedented gains that are undeniably off the charts. People are ordering food on their mobile phones. Grab and Lalamove drivers are making a killing, some of them are on the move 24/7.
Consumers who weren’t into the whole online purchasing thing got converted overnight. Older people who didn’t know how to enter their card details online had to ask their grandchildren to do it for them so they could buy a coveted item for the kitchen. Experienced online shoppers discovered a boatload of new websites to visit. Things that were usually purchased off shelves had to be picked up from actual physical stores had to be delivered.
Retailers who didn’t have an online storefront had to readjust and make one out of fear of getting left behind in the race for snagging customers, while countless of website developers had created entire websites from scratch to help lead online consumers to the right places.
From an investor’s perspective, this increase in online purchases can provide good opportunity to make a profit. Investing in companies with successful e-commerce channels and on efficient logistics entities could be the way to go. Technologies that enable movement of goods through online means are going to stay in high demand.
Healthcare innovation has never been this important.
Healthcare has become more important than ever. Health insurance has never looked this good since more and more people will be paying for them – treating them like an additional utility bill. Everyone wants to feel secure when an unexpected expense concerning a sickness strikes regardless of whether it’s related to the coronavirus will not.
The pandemic has also brought healthcare-related technologies into the spotlight. Because hospitals are overwhelmed these days, those who would usually come in to have a non-COVID-19 ailment checked have become reluctant to enter hospitals and spend time in waiting rooms for their appointments with their doctors.
“Telehealth” or virtual healthcare services featuring remote consultations have started gaining ground, and there are already tech businesses engaged in this niche benefitting from the surge in demand. Soon, hospitals and healthcare systems around the globe will start realizing the need for this setup. If you’re an investor, keep your eyes peeled for telehealth.
There is also a growing number of businesses engaged in pushing medical devices into homes, which can be particularly useful for COVID-19 patients who need to isolate themselves in a bubble. Devices that would monitor respiration, blood levels, or oxygen levels with software attached to them for data collection will enable healthcare providers to remotely monitor patients.
People will be excited to finally get out.
When the lockdown is finally lifted and daily news updates about the coronavirus subsides, people would get excited to cure their cabin fever. As soon as the community gates open, everyone would want to go away for vacations. Staying at home for months, like everything else in life, loses its appeal after a few weeks. The utopian dream of home-based work has erased the fine line between work and life for many, and the only way to get away from the maddening shroud is to go on a trip.
This is not to say that there will be a mad dash to the casinos and the luxury cruises soon. Social distancing will linger so people will be cautious about being in crowded places. Perhaps there will be a shift in their mindset regarding where to go. Some might favor tramping on the countryside over marathon walks at the mall. It could be all about small family trips to the beach without the entire clan.
This could work in favor of smaller companies in the travel industry, meaning the small bed and breakfast place in the middle of nowhere and the hidden garden café that no one really paid attention to pre-COVID-19. Companies and small lifestyle brands engaged in selling outdoor accessories and equipment, recreational vehicles, and exclusive trips would find this as an opportunity.
If you are looking to invest your money in a post-COVID-19 world, you may be looking at an entirely new landscape so radically different from the one you were exposed to before. The virus has caused a significant down
downturn which has greatly impacted people’s individual finances. If you did not feel this negative impact immediately, you might be still be thinking about how you don’t want to lose your money. Therefore, you need to be careful where you put your investments in and avoid making impulsive decisions that you will regret later
Because P2P lending is done online, COVID-19 didn’t directly impact the operations of the Blend PH platform. In fact, it has even gone all out by offering a new investment arrangement that guarantees a 9% return on your money per year called Auto Invest. Take a look at this new feature and secure your future. Email [email protected] and get started today.