The COVID-19 pandemic has reshaped the way that the business world operates. Even though certain industries have been forced to close down, it has also paved the way for other industries to emerge. In a stroke of luck (as weird as that sounds when describing a pandemic) certain companies are well-positioned to become incredibly more valuable.
If you’re an investor, there are definitely certain industries that would be smart to invest in over the upcoming months.
These are three industries that you should invest in during the COVID-19 pandemic.
The number of people who work as a freelancer has been steadily increasing over recent years. However, this trend is expected to drastically increase over the coming months. There are two reasons why this is:
- People who were let go are turning to other options for earning cash from home.
- Freelance workers are cheaper than full-time employees for companies who are looking to trim costs.
Additionally, considering that fewer companies will be spending time at a physical office, it reduces the need to have full-time employees.
Companies who offer digital entertainment services are in a good position to churn out profits over the next few years for two reasons:
- Quarantine – The majority of people will be stuck at home with nothing to do. This means they will be much more likely to queue up something on their TV.
- Less competition – Since so many “real life” options are still closed (concerts, live sports, movie theaters, etc.) this means people have fewer options to choose from. This means more incentive for people to queue something up on Netflix.
For these two reasons, it would be wise for investors to invest in companies that offer streaming services over the coming months.
The fact that many retail businesses have been forced to close their physical locations has pushed almost every company to turn online to generate sales. The number of companies that sell products online is rising incredibly fast and major players like Walmart are making it priority #1.
Obviously companies who offer eCommerce services are in a good position to profit from this trend. However, so are companies that are responsible for processing all of these digital payments.
For every online payment, there is a payment processing company that helps complete the transaction. These companies take a tiny percentage of each transaction, which can really add up over time.
We hope that you’ve found this article valuable when it comes to understanding a few industries that you should avoid during this pandemic. To get alerted of new articles when we publish them, make sure to subscribe below!