The Best Sectors for Investing during Coronavirus Pandemics

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There is no doubt that the quarantine measures introduced by the majority of governments to fight against COVID-19 are going to have a huge impact on the economy.  But more importantly, the lockdown is going to change our lifestyles and paradigms in the long run. Сompanies that are unable to adapt to the new reality, change the workflow and offer the customers new experiences, will die. At the same time, some sectors are boosted by the pandemic and are likely to keep growing when it’s over. There are two main reasons for this. First, some new approaches we were forced to adopt during self-isolation will prove as more efficient than traditional ones, e.g. remote working. Second, the businesses will definitely draw lessons from the current situation and prepare for the next pandemic: manufacturers of goods will strive to automate as many processes as possible to decrease the role of the human factor in the future. Here we are going to share some tips on how to select the right projects to invest during the crises and coronavirus meltdown.

Short-term perspective 

From a short-term perspective, it makes sense to focus on sectors that are growing fast due to the demand structure shifts driven by the current situation.

1. Sanitizers 

    Only in the UK hand sanitizers monthly sales increased by more than 250% compared to the previous year. One of the projects in this sector is available for investing on TFGcrowd platform.

2. Protective Masks 

The chances are that protective face masks will become our essential accessories for the next half-year or even more. Large and small fashion companies retool to produce and sell masks.  Startups are trying to improve both the technology and design (e.g. Airinum).  

3. Vitamin complexes

To avoid being exposed to this virus it is important to support the immune system. This leads to a growing demand for vitamins and supplements. 

4. Grocery and food delivery services

Since all restaurants and pubs are closed for quarantine, food delivery became one of a few segments that benefit from the current situation: in the UK the online delivery companies revenue increased by 11.5% compared to the last year and reached 4.528m euros. 

Medium-term perspective

A paradigm shift is the best time to become an early bird investor in innovative projects that address the new social and business needs.  Look for such solutions in the following spheres: 

1. Remote work

Focus on tools that help the remote teams to collaborate efficiently:

  • task-managers;
  • online communication tools (video conferencing, messaging);
  • electronic signature and online documentation flow tools.

In addition, the increasing volume of data that employees exchange online raises the problem of confidentiality and personal data protection. There’s a high probability that in the near future we will need more reliable cybersecurity solutions to address it. 

2. E-learning

It was not that easy to switch to online classes for the majority of educational institutions when they had to close their doors for quarantine. The experience of European countries demonstrated that we still lack easy-to-use software platforms and tools for remote learning that can provide an adequate level of motivation and efficiency for students.

3. Robotics and automation

Businesses that were forced to stop manufacturing because of the pandemic bore significant losses. They could avoid or at list minimize this risk if they had fully automated production facilities. Thus, the trend of “more robots - fewer jobs” that started after the financial crisis in 2008 is going to continue. 

4. Virtual and augmented reality

Self-isolation changed not only the way we communicate but also the way we travel and entertain. We don’t know yet if we will get back to normal life soon or the restrictions will last a few months more, and which preventive measures we’ll have to take after to avoid pandemics in the future. So, the companies developing VR/AR solutions for fashion (virtual fitting rooms), games, traveling (museums virtual galleries, virtual tours) will grow even faster than before the crisis.

5. MedTech and telehealth services

Thousands of infected healthcare workers showed that we were not ready to limit their potential exposure to the virus. Disinfecting, delivery robots and drones introduced by the robotics companies must resolve this problem. On the other hand, many healthcare companies started to adopt telehealth solutions that will scale up in the next decade.    

Long-term perspective

The economic recession will open new opportunities in the real estate market. Now it’s the appropriate time to search for secure superb locations for lease at below-market rates. You have a good chance to find attractive offers of property for retail and restaurants. Focus on the UK, Germany, and Dubai markets, which currently see huge discounts to prices and, therefore, can provide higher possible long-term yields.