Pandemic Investing Trends to Look Out For

1.) Rebounding Industries

After roughly one year of quarantine, people are yearning to get out of their homes and engage in social activities. People want to travel, go to nightclubs, concerts, conventions, and more.

Industries that were negatively affected by COVID are airlines, cruises, and hotels. Now, we see restrictions are beginning to lift. As more people are vaccinated, these industries will see a return in growth.

2.) Cryptocurrency Correction

In 2020, cryptocurrency continuously breaks all-time high prices as the leading cryptocurrency, Bitcoin, reaches $60,000. However, in May 2021, it was reduced roughly to $40,000 along with other cryptocurrencies.

Elon Musk made a statement saying, Telsa will not be doing Bitcoin transactions due to the climatic impact it from Bitcoin mining.

Then China passed a regulation to ban financial institutions within its country that engage in crypto transactions. It cut the price of Bitcoin down to roughly $30,000.

Some cryptocurrencies like Ethereum dropped largely along with Bitcoin. While cryptocurrency prices have dropped drastically, it shows an opportunity to buy low, knowing Bitcoin has the potential to go as high as it did before of $60,000.

3.) Clean Energy Rise

The House of Democrats introduces the CLEAN future Act to address climate changes by bringing economy-wide greenhouse gases to net-zero by 2050.

If the Act is pass, it requires significant reform on Federal Energy regulations that affect most industries as they must use and produce zero emission.

The authorized budget is $565 billion dollars to be used within ten years to reach net-zero greenhouse gas.

Many clean energy companies and clean start-ups will be working with businesses to comply with reforms. There’s potential growth for investing in green technology companies.

4.) Inflation

In April 2021, the inflation rate reached a high of 4.2 %. The last time the inflation rate reached 4.2 % or higher was back in the 2008 recession.

Inflation reduces the purchasing power as the price of goods increases. As businesses are returning to normal, there is potential for inflation to affect the overall market.

Some companies are impacted by inflation depending on their industry. Fixed investments can’t keep up with inflation and lose purchasing power.

Depending on your financial position, you may need to invest in high-risk investments to keep up with inflation.

5.) Healthcare Potential Growth

Healthcare and pharmaceutical companies that contributed to developing COVID vaccine or COVID supplies had tremendous growth over the year.

Investors are willing to invest in companies to supply the COVID vaccine and keep people safe with COVID supplies and equipment.

Even after the pandemic is over, there’s still a need for healthcare to address COVID. There’s been talk of COVID vaccines requiring booster shots for some people.

Companies that are treating COVID can grow further in the future.

6.) Work From Home Technology

Quarantine has forced many businesses to have employees working from home. Thus, technology companies were in high demand to provide the necessary equipment and software to meet the business’s ability to work from home.

COVID has shown, employees can work effectively from home without commuting to the office.

Companies are rethinking their office policy by allowing employees to fully work from home or a hybrid of coming into work and working from home.

The growth in technology companies exponentially grew in 2020 as we look for online solutions to incorporate into our daily lives during the pandemic. We can see more progression with technology after post-COVID.

7.) Real Estate Growth

The real estate market took a big hit in 2020 as consumers weren’t interested in buying. The pandemic made people more conservative with their spending by holding off on making large purchases.

Lenders had to reduce their interest rate near zero to persuade buyers during that time. Typically, real estate is a good investment as historically, it’s been growing and has little effect from the stock market.

As things are returning to normal, the real estate market will recover.

Closing Thoughts

As we progress to being post-COVID, there are other opportunities as a result of the pandemic. However, nothing is a guarantee when it comes to investing in the market.

Take the time to research and decide whether to invest as prices are always moving.