A common topic of discussion today is how the world will change going forward in the aftermath of COVID-19. No one knows exactly what the stock futures will look like, whether inflation will change or how investment opportunities will be impacted in the short-term and long-term future. Many industries and lifestyles may be altered forever, but the investing landscape may not change as much as you’d think. Here are some characteristics that may remain the same, become accelerated or change completely as a result of COVID-19.
Characteristics Likely To Remain Unchanged
Inflation is likely to remain low for the foreseeable future. The global output gap is projected to be too large and will prevent prices and wages from rising too rapidly. Of course, some industries may experience higher inflation than others. The food supply chains and manufacturing industries may have the highest chances of inflation, but there’s still no guarantee that it will be significant enough to alter prices. An investor who believes inflation will remain unchanged can consider investing in equities, while investors who view inflation as a risk may consider fixed income that’s more protected against inflation.
What Areas Will Accelerate Because Of COVID-19?
Technology and healthcare are two sectors that should accelerate due to COVID-19. When much of the world was locked down during the pandemic, business was conducted virtually more than ever before. This proved in many ways that virtual offices are possible, so technology is expected to advance rapidly. Healthcare innovation is also an interesting sector for investors. More focus should be given to healthcare to get ahead of pandemics like COVID-19 and be able to develop vaccines and provide treatments quicker. The healthcare industry has been impressive throughout the pandemic, but expect more resources and funding to be available to them in the future for further advancements.
Changes That May Be Here To Stay
Even before COVID-19, sustainability investing was a hot topic. Experts believe the stock futures of sustainability will continue to look promising and provide long-term investment opportunities. Other changes to expect revolve around the political landscape. Many nations were not prepared well enough for the COVID-19 pandemic, which could mean changes in policymaking. More government intervention and influence are likely for years to come and potentially lead to new economic models in parts of the world. These unprecedented changes could have lasting impacts on investors, so it’s something to monitor closely in the coming weeks, months and years.
At Stock Investing Info, we provide investors with unbiased information to help them take advantage of the best investment opportunities available to them. The COVID-19 pandemic has shaken the global economy and created a level of uncertainty unprecedented to most of the world. Some aspects of investing will remain unchanged or even improve, but others may be changed forever. We keep up with all of the latest information available to help you make the most of your investments, so contact us today if you would like to speak with one of our experts