Analyzing investment trends post-COVID-19.
September 14, 2020 (Investorideas.com Newswire) There is a spike of hope of revival after some quite troubling times. The economic recession was the worst of times since the past century and environments for making investments haven't remained favorable at all. Well, with the lifting of economic lockdowns and health systems getting recovered, we can assume that once again we are back on track.
Investments were halted for some time as we were observing trade wars between superpowers, the rise of protectionist policies, and the pandemic had put the icing on the cake. Recent circumstances have been an eye-opener for the masses and traditional investment commodities like gold and oil are considered the most volatile ones due to oil prices falling negative.
With such kind of change in the mindset of people where they want to minimize the impact of political uncertainties, there is going to be a major makeshift in the investment trends. Let's evaluate possible investment trends post Covid-19:
Rise of Tech-Based Trading Platforms:
Artificial intelligence and machine learning are bound to leave a massive impact on how we perform trading activities. The best apps for stock trading have evolved quite a bit and you are able to perform trading activities at your utmost convenience.
The absolute advantage of these technology platforms is that they provide useful investment insights and you are able to make informed decisions. The dependence on human analyses remains minimum with the use of these high-end technological trading platforms.
Big players under immense legal scrutiny:
As the corporations continue to grow larger than the governments, they have raised certain alarm levels with the regulatory authorities. Tech giants like Facebook and Google are facing immense operating pressure under evolving European Union legislations and Chinese corporate giant Huawei is also facing intense legal battles.
Under this environment, investors are shying away from the companies that will reflect absolute volatility in terms of their global operations. Also, oil price wars have presented very limited investment opportunities in the areas that were considered eternal goldmines. The evolving global political environment has a great influence on the functioning of financial markets.
Investors have tended to shift towards localized investments rather than pouring their money in the ventures of big corporate giants. They do not present a safe and healthy option as of now due to some protectionist policies on the rise and some badly affected due to global trade wars.
Lifestyle products based industries will be affected a great deal:
With such a condensed economic situation and masses running out of their saving amounts, there is going to be quite less spending on lifestyle products. Industries producing essentials will continue to thrive as the global population is still on the rise, but for some time, industries operating in the lifestyle niche will have to suffer a bit.
This is probably due to the fact also that limited travel and tourism will continue to take place and households will suffer from budget constraints for a considerable period of time. Consumers are looking to channel their savings as they are now aware of its importance more than ever.
These are the most expected market trends post-pandemic as investors look to jump in once again. Investors really feel the need for global harmony and peace conditions once again as financial markets are the worst affected by the rise of any uncertain situation.
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