COVID-19 has created quite some turmoil all over the globe, affecting everyone from the livelihood of individuals to the economies of countries. While the world is adjusting to the new normal life, it is only reasonable to wonder about the aftermath of this pandemic.
Will we go back to where we left off? Most certainly not! Any major event or pandemic in history, especially with a global impact like this one, has left the world with new learnings, innovations, and new ways of doing things. Hence, post-COVID might not resemble life as we knew before. However, change is not necessarily a negative thing.
Let us look at the possible positive change we can expect post this pandemic:
Investing in Blue-chip stocks considered safe:
Though in normal times, blue-chip stock investments are often looked at as boring, outdated, and stodgy, they have gained popularity in the unstable markets of pandemic times. As dividend-paying stocks get less impacted in a bearish market, blue-chip stocks are relatively safe.
HNIs, top financial institutions, and other wealthy investors are increasingly preferring to invest their money in blue-chip stocks as it offers stability in these volatile markets. The stock owners who have held their portfolio of blue-chip stocks through the years are having a hay day now as these stocks are yielding staggering amounts of profit to them. Market experts have also predicted that your blue-chip investments could also double in value in just two years.
As the COVID-19 crisis has pushed the world into unchartered and uncertain waters, blue-chip stocks provide much-needed safety. Stable and wise investments are the way to go in such an economic crisis.
However one cannot assume that blue chip will remain ‘blue chip’ always. It needs monitoring and ensuring that the business remains profitable, growing and is run by honest management.
The emergence of innovative software applications and tools
Watch out for technological companies during and post COVID-19 pandemic. As this pandemic has forced the majority of the global workforce to work remotely, the demand has tremendously increased for innovative software applications that support the remote working conditions.
Not only offices and organizations, but even educational institutions have also been functioning with virtual classes which has opened a host of opportunities for Edutech companies. This pandemic has started a new wave of digitalization in the world. Even the organizations or sectors that were reluctant to embrace technology are now forced to digitalize their crucial process flows.
The new-age technologies such as the Internet of Things (IoT), Artificial Intelligence (AI), Machine Learning, Mixed Reality, Virtual Reality, and Robotics have almost become essential for most industries. Organizations across the spectrum are rapidly ramping up the inclusion of such technologies to optimize their remote working conditions. More so in the manufacturing sector, which has come to a halt during the virus outbreak.
It would be a prudent thing to track technology companies as they would make for significant investments in the near future.
Real Estate in Tier 1 Cities becomes affordable
As remote working is the order of the day, businesses do not need to invest in having physical offices. This decreased investments in real estate of Tier 1 cities would bring a wave of change in the real estate market.
Especially, buzzing business districts, which majorly derived their demand from the existence of offices, would see a huge decline in the demand if you have been planning to invest in real estate and could not do so because of the skyrocketing prices. This crisis may serve to bring down real estate assets to affordable prices. Additionally, it would be a smart idea to track your existing real estate properties as their value might be varying considerably.
In the gloomy times of the pandemic, these above positive changes bring in a ray of hope and something to look forward to. Want to learn about how to plan your investments during the pandemic? Get in touch with our experts.
Happy Investing!
Jama Wealth
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