Post-pandemic business investment opportunities
The global pandemic lockdown has created an economic situation that could take years to recover from. While this is devastating for some sectors such as tourism and manufacturing, other markets are opening up and providing fertile ground for future investment opportunities. Short term analysis has shown that sustainable investing is at an all time high, as is digital investing: software, apps, and e-commerce are experiencing a golden age.
For savvy investors who are looking to benefit from the global downturn it makes sense to look at the performance of sectors that have done well throughout the worst stages of the crisis. Online delivery, digital enterprises, environment, and social sustainability companies, even some property markets were on the up with investors looking to take advantage of low demand. We take a closer look at some of the markets likely to make big strides post-pandemic.
Apps and software
The Zoom Boom that occurred during the pandemic wasn’t the only unexpected digital tool to receive exponential growth. Google Hangouts, Skype, Zoho, And GoToMeeting, as well as digital software programs for scheduling and project planning, all found their share prices growing overnight.
The Zoom app, for instance, was downloaded 2.13 million times around the world on 23rd March, the same day lockdown was announced in the UK. Two months earlier the app was receiving a modest 56,000 downloads per day. This trend is likely to continue for months to come and into the future as companies increase their digital infrastructure to build more flexibility and resilience into their business models.
For a profitable investment return in 2020 and beyond, stake your claim on apps and software that are commonly used in the digital workplace.
Overseas property
If you’re thinking about investing in property as a buy-to-let option or to renovate and sell on, it would be sensible to broaden your horizons in 2020 and look abroad for opportunities. Properties abroad offer better capital growth and higher yields than their domestic counterparts.
But where is good to invest? This is a question that requires a bit of research since you don’t want to get caught up in complicated tax laws or too many legal responsibilities. Emerging economies can offer some good deals, but it’s often wiser to invest in more established markets such as Singapore. There are many resale executive condos worth buying in the country that offer excellent value and good returns.
The beauty of overseas property investment is that it can also be a second home, office, or business hub if you choose the right spot to buy into.
Online buying
The culture of online shopping was growing anyway but during the pandemic it has greatly accelerated. The e-commerce businesses that were doing well, such as Amazon and Shopify, have expanded their customer bases while smaller online retailers and companies that have only just switched to digital are reaping the rewards.
If some consumers were not comfortable with online shopping before they are now as people are getting more familiar and routine with the processes. It’s hard to see how this will change going forward, it may result in a society something like Dubai, where almost nothing is bought in shops and even the milk is delivered to your door as and when you need it.
From an investment perspective it makes sense to put money into companies such as Target who are likely to come through the crises in better shape than they went into it. Shopify, also, which has increased its market share considerably, is a growing company that’s hard to ignore.
Environmental and social
Against the backdrop of high inflation and low economic growth globally there is set to be an increase in investment opportunities in the environmental and social enterprise sectors. Issues such as human rights, employee wellbeing, and community relations will be more valued in the community post-pandemic, and while they were seen as a luxury in the past, they are likely to become critical business mechanisms going forward.
Sustainability will be at the core of many governments post-pandemic as the world continues to battle against the threats of climate change and demand of consumers for a more ethical infrastructure continues to rise. Large scale renewable energy companies will get a shot in the arm, as will clean transport and sustainable food practices. Clean and green investments in 2020 and beyond are likely to provide reasonable returns on longer-term investments. It is also worth considering big pharmaceutical companies and healthcare providers.