Post COVID Generation: How we have changed as investors
The pandemic affected every aspect of people’s lives, including investment priorities. What kind of company is now attracting the attention of investors of the post-covid generation? How did society’s priorities change? Technology, health and sustainability industries lead the way.
After the pandemic, everyone’s life changed. Every aspect, every habit and every routine was affected by the disease that touched every country and now, the world must face what will be the consequences of it. One of the environments with a high impact was that of the financial world, since, after surviving outbreak after outbreak and wave after wave, the investor’s vision turned 180º.
The priorities of all humanity changed and, seeing the financial impacts, saving became a priority for many. For others, the industries in which to invest also took a turn, passing topics such as health, technology and sustainability to have greater prominence. This particular aspect represents a positive change in the minds of investors. The thinking now is towards socially responsible investments, with a good impact on humanity; or, as in the case of the technology industry, facing a growing demand.
One of the benefits often attributed to socially responsible investing is its strong defensive nature, something that we've been able to examine during the recent Covid-19 crisis. This article analyses that aspect and the reaction of investors when it comes to allocating their assets.
Technology industry: one of the main beneficiaries
With quarantines and confinements established in all countries of the world, ecommerce, digital marketing, and everything related to telecommuting take the lead in terms of investor interest. The need to stay at home has opened the door for these services to be perfected and popularized, feeding the circle that is the economy; which, as we know, cannot be stopped completely.
This confinement has also increased the consumption of electronic equipment, whether for entertainment or telecommuting. All this translates into a drive towards technological transformation which is expected to continue to grow in both demand and supply.
Health industry: a fruitful boost
Investments in the health industry are one of the best decisions an investor can make as it aims both at a positive financial return and at boosting an industry that will generate the most fruitful results: the well-being of humanity.
Technological advances applied to medicine, the development of drugs or vaccines, the optimization of hospitals and health centres; or ongoing studies that can end diseases and conditions that affect humans are just some of the aspects of this vast industry.
Investing in sustainability: necessary and urgent
As far as investments in sustainability are concerned, it makes sense for it to be a strong industry in the post-pandemic world, since the effects of almost completely halting the environmental impact generated each day by daily activities were observed all over the world. Once countries begin to return to normal, efforts will continue to lessen the environmental impact and, with it, global warming.
How have we changed as investors?
The answer to the initial question is that the priorities changed and now the main interest is directed towards other industries, of which we named three earlier. However, the consequences of the pandemic will actually begin to be seen after a period of time, so this trend may shift to a more conservative one, with less risk and safer investments.
Emerging-market currencies beaten down by COVID-19
The surge to the U.S. dollar given its perceived safe-haven status has driven several EM currencies to record lows against the greenback in recent weeks, such as the Turkish lira, Mexican peso and Brazilian real.
COVID-19: How to spend time at home in the best way possible
Preventive actions are proving to be key in stopping the spread of Covid-19.