It has been one year since the Covid-19 pandemic changed the world. The global health crisis has created a ripple effect that is still being felt today. Different industries were affected, and businesses have experienced losses from which they are unable to recover. In fact, according to CNBC, Yelp data shows that 60 percent of American small businesses were permanently closed due to the coronavirus. This left many people wondering what kind of investments they can make, and whether it makes sense to invest during this time.
Right now, there are several sectors that investors are wisely considering to put money into. While trying to invest during this pandemic comes with lots of risks, especially for small-scale investors, the best way to get involved is to invest in companies or sectors that are relevant to the pandemic. It should also be noted that most of these sectors have seen a significant increase in stocks and market value. Here are the 3 sectors that people are investing in during the Covid-19 pandemic.
1. Pharmaceutical Companies
As the pandemic progresses, many people will need to receive shots. In addition, more and more people will be turning to prescription medicine to treat infections from modern diseases. In fact, pharma companies like AbbVie, Eli Lilly, and Daiichi have experienced more than 10% market cap growth in 2020 due to the Covid-19 pandemic. With their overall performance, investors are trying to look into each company individually, and with the help of tools like equity simulators, investors and founders are able to go through their individual portfolio of stocks, and P/E ratios so as to make financial decisions for their companies.
2. Telecommunication Technology
According to a recent report, telecommunicating technology has seen a 75% growth during the Covid-19 health crisis. It is expected to continue experiencing rapid expansion in the coming years. Since the way people live and work have changed and became more reliant on technology, tech companies are experiencing an overwhelming demand for their services. Teleconferencing tools such as Skype and Zoom are now considered invaluable by many companies. With this in mind, investors have started looking in investing in tech companies and companies that produce teleconferencing tools.
3. Food Production and Distribution
Not only is food becoming more expensive as the pandemic takes hold, demand for it is also increasing. Consumers are focusing on living a healthy lifestyle and consuming healthy foods, especially foods that strengthen the immune system. The demand for food supplements, healthy foods, and natural products is high. Some investors are putting their money into companies that are able to provide a large amount of food, especially for the companies that are producing healthy and natural foods.
Despite the global economic slowdown, investors have been willing to put money in these sectors because of their higher long-term growth potential. These industries are very likely to yield great returns during the Covid-19 pandemic that they cannot get from other sectors. Until the health crisis is over, it’s likely that these sectors will continue to grow as demand for them rises all over the world.