by Grace Story
The world has inevitably changed. Whether you are ready or not, things are likely not to be the same as they were before. With millions of people globally isolated in their homes, we have seen an eruption of new techniques such as online concerts, working from home and more online classes, implying that there is a global shift. As we forget about the old and align to the new, we are also presented with new opportunities, including where to invest our money. Here are sectors we think will yield better returns after COVID-19.
Information and Technology
Currently, we are relying heavily on our gadgets—be it smartphones, tablets or computers—to help us carry out our daily activities, such as purchasing goods online, interacting with friends and taking classes. Corporations have not been left behind. While maximising profits, we have seen more companies implementing strategies that allow their employees to work from home. For this to work appropriately, companies are required to have efficient technological infrastructures in place, including software (such as apps) and hardware.
As a means to reduce expenses, we will see more companies getting rid of office spaces and relying heavily on IT as they fulfill their business continuity. Invest in shares of IT companies such as Seagate Technology Plc, NortonLifeLock and Cadence Design Systems.
Artificial Intelligence
In line with the IT sector is Artificial Intelligence. Knowingly or unknowingly, we have interacted with AI up to this point. If you have a smartphone, you have probably used the facial recognition feature and even virtual assistants on your phone. While working from home, for example, for security purposes, your credentials are required to log in to systems, which is only possible through AI.
Companies such as Google (parent company Alphabet), which uses search results, speech recognition and ad pricing, will see profits in the future after COVID-19. Other such companies include Microsoft, Twilio and Salesforce, among others.
Biotech
The biotechnology industry, including companies like Gilead Sciences, Inovio Pharmaceuticals and Regeneron Pharmaceuticals, are having sleepless nights amidst this pandemic. Thousands of lives have been lost, creating fear and, hence, a demand for a vaccine that will put this chaos to an end. The stock prices of companies in the biotech industry are currently low, but there is a high anticipation of a surge in the coming few days, making this the best time to invest in this sector as we wait for the vaccine to go through research and development.
As a precaution though, investors must be aware of the high level risk involved in this industry, and especially at this time. Researchers have found various mutations of COVID-19, which may result in vaccines being useless.
Food Delivery
Lockdowns due to coronavirus have forced people to stay in their homes and have also resulted in closures of restaurants. This has led to households ordering food online and having them delivered at their doorsteps. In turn, this has created a demand in the food delivery industry, and stocks associated with these companies have seen a surge within the past month.
Food delivery companies such as Waitr, Grubhub and HelloFresh have seen a rise in their stock prices because of the global lockdown and restaurants being closed. This will continue to be the norm in the future, making it worthwhile to invest in them now.