Automation, technology, sustainability and healthcare are the sectors to watch for investments post-COVID-19. Investments in the new environment of 2020 are set to accelerate and evolve in these themed areas, as the economy gradually recovers.
The global pandemic placed the world into lockdown, and has had a profound effect on personal lives and businesses alike. With changes that would seem to have a permanent position in the workplace, there are some sectors that are expected to thrive in the second half of the year and continue into a post-COVID-19 world, according to investment strategy experts and financial advisors.
Due to lockdown on a global scale, people in all continents were using the Internet extensively. Online shopping and working from home became the norm, and as a result there were major constraints on networks and businesses, and the need to become digitalised was a high priority. Therefore, modernisation and transformation of digital infrastructure has become more imminent, as the development of the virtual economy accelerates.
The implementation of social distancing in all industries, especially within the production line, has increased the use of automation and robotics to continue the work of these companies, where staff are lacking. Artificial intelligence can benefit numerous industries, and its main advantages lie in improved productivity, lower costs and a production line of human-machine collaboration, that allows for the COVID-19 restrictions in place. It is believed that this trend has certainly accelerated due to the virus, and that this change is set to remain in place during and after the pandemic, and that artificial intelligence will be a core technology in the basis of almost every stage of a company’s development and creation process. The new World Robotics 2020 Industrial Robots report, from the International Federation of Robotics, shows a record of 2.7 million industrial robots operating in factories around the world, which is an increase of 12%.
With artificial intelligence, automation and robotics, the strength of the technology sector has been clear during COVID-19 and the outlook looks excellent for a post-COVID-19 world. This investment theme is global and can be applied to all equity markets, with advice that this would be a long-term investment.
Environmental, social and governance investing has become more popular over the years and is a trend to watch post-coronavirus. More investors now take the time to consider the impact of their investments. The pandemic has also highlighted further the fears of climate change, with one example being the reduction in pollution, due to the decrease in travelling to and from work. The pandemic has also enhanced the rise in sustainable investment. People have been looking at more sustainable ways to travel, as businesses look to introduce progressive policies with their sustainable and social impact in mind, as well as the investment in sustainable products.
Since the beginning of the coronavirus crisis, the importance of the healthcare industry has been highlighted, and there has been fast growth in innovations in the health sector. This theme is ideal for dynamic investors, with a long-term investment recommended. Mainly due to the health crisis, health-related spending is expected to soar in the coming years as we enter post-COVID-19 territory, and will support numerous developments in the healthcare sector.
Since social distancing has been implemented, remote diagnostics has seen an increase, with several companies active in laboratories, testing and online or remote diagnosis becoming more popular – and having seen a rise in their share prices in recent times. The success in this area could see a continuous use of these remote diagnostic services. With the health crisis being an obvious catalyst, the health care sector has already performed well recently and is set to continue to reach new heights.
Moving forward in a post-COVID-19 world, it’s believed that a multi-assets strategy with a range of sectors, will help investors maintain a better position, capturing potential investment returns whilst managing the risks more effectively. A popular form of trading in the financial market, CFD Trading gives investors the opportunity to diversify their portfolio as well as give access to the global markets.