Trading in the future: Post COVID-19 and Vaccines
Following the announcements made by pharmaceutical giants Pfizer, Biontech and Moderna about the up-and-coming release of the Covid-19 vaccine, there has been a global sigh of relief as we look towards getting the virus under control.
With the current pandemic-fuelled economic down turn being experienced globally, there has been a lot of interest generated around the stocks that are going to benefit the most from the vaccine, as penetration into the financial markets has become easier, and other methods of investing have become popular, such as investing with leverage.
Continue reading to see which industries will stand to gain the most as we finally begin to recover from the pandemic, as well as which trades we are planning on keeping an eye on.
Travel and Hospitality
The travel industry is perhaps one of the most obvious that will stand to benefit from our post-Covid19 society, ranging from airlines to cruise ships, manufacturers and engineers within the travel sector, and hospitality staff at all levels.
When borders have started to relax again and people are free to travel, companies such as Virgin Atlantic and their contemporaries will see a massive boost in revenue. This is because the travel restrictions imposed on many people globally have understandably left us itching to stretch our legs on a much-needed holiday and change of scenery.
However, there have been incremental benefits during the pandemic for the hospitality sector. Some people have had to use hotels domestically to help with living arrangements, or having to self-isolate as per government guidelines.
Film and Performing Arts
The film and performing arts industries have taken a gigantic blow over the last year or so. With many cinemas and establishments closing down due to government advice regarding COVID-19 restrictions, and some even having had to close because of a lack of foot traffic and revenue.
With less triple A blockbusters coming out, people are less inclined to venture out to a cinema or theatre that is currently opened and exercising social distancing.
In our post Covid-19 society this will all change, as actors and writers will finally be allowed to work freely again, setting them up to lead an artistic revolution and, in turn, bumping up revenue for these sectors.
The financial sector, although it has also experienced a down turn across the board, has seen more participants investing and trading on exchanges and financial markets. This is because people who have lost their jobs or have a fear of this happening soon, are looking towards gaining multiple revenue streams, as a security blanket for the future.
Banks are highlighted in particular to benefit post COVID-19. Once the vaccine has been rolled out globally, investors will have more confidence in banks and financial institutions, because will actually decrease the provisions for loan losses, as well as dealing with bad debt that’ll become more apparent as the pandemic progresses on.
We will see the strength of many aspects of the finance industry grow, with the potential for a slight deviation from traditional flat currencies, as decentralised finance becomes adopted by more organisations around the world. Online platforms such as Skilling, allow investors to use CFD trading to exchange in all manner of markets at any time, all in one place – and even outside of trading hours.
Whether retailers and services are offline, online, or a combination of the two, the pandemic has emphasised the use of omnichannel marketing and outreach. Post COVID-19 will see a rise in the importance of having an online presence as a business, but also taking it the extra mile and being competitive regarding pricing as well.
As consumers, we will see an increase in marketing that’s geared towards loyalty programs and extending the length and connection we have with specific organisations.
Businesses and consumers were always heading in this direction; however, COVID-19 has accelerated the adoption of online retailing, and marketing tactics are diverging away from traditional practices and brick-and-mortar locations.