5 Economic Sectors You Should Consider Investing In Next Year

The pandemic has rocked the world economy in a bad way, and we’re bound to feel the effects of this debilitating pandemic ripple through the years. However, there’s cause for hope. As some economic sectors sink below their average threshold, others show clear signs of a strong run. This article will discuss the best sectors to invest in as we take advantage of the new growth ushered by the end of the pandemic.

eCommerce

The hard lockdowns and social isolation made people flock towards buying stuff as a way to feel connected to the outside, leading to traditional brick-and-mortar retail stores and eCommerce websites struggling to meet the sudden demand.

The best example of this is retail giant Amazon, which grew by $570 billion in market capitalization and a 63.3% increase in stock valuation since the start of the pandemic. Although trailing somewhat far behind, other companies are already following, such as online retailer Overstock with its 143.86% stock price increase.

Food Delivery

It wasn’t too long ago that people could wine and dine by themselves or crash a 24/7 fast food for their midnight cravings. The lockdown strongly discouraged dine-in settings and restaurants are only now slowly opening up to the public.

When we couldn’t go out ourselves, we relied on food delivery apps to address our munchies. As a result, companies like GrubHub, UberEats, and Takeaway have become household names.

And it’s not just food delivery apps — grocers and meal kit delivery solutions are on all-time highs as well, fuelled by people wanting to be convenient and safe while still being health conscious. An example of this is Blue Apron, which has risen by 187.78% since February 2020, and Ocado, which rose by 77.55%.

The Gaming Industry

Gamers didn’t find it hard to find something to do during lockdown at all. Although many people have reduced their outdoor trips, online worlds are alive more than ever. Millions of Americans have been playing more and more the past year and a half, fuelled as much by increased free time as they are by the ever-increasing need for socialization.

Obviously, the gaming industry has greatly benefited from this. Already on an upward trend before the COVID-19 virus hit, it has now gone above the film and music industries in terms of profitability.

As an excellent example, the tech giant and gaming-industry fixture Logitech’s stock has risen in price by about 33.22% since February 2020, and game developer Zynga gained about the same (30%) during the same period.

Biotechnology

The sudden and debilitating effect of the COVID-19 virus on the world populace spurred biotechnology giants into action. Whether it’s expanding on older forms of vaccines, creating new ones, or exploring new kinds of technology for future use, the biotech industry has been, in many ways, spearheading the fight against the virus.

The newly-developed vaccines are a great example of this sector’s potential. Brands that have successfully developed effective vaccines, such as Pfizer and Moderna, will undoubtedly see more capital growth to come.

5G Tech

With the pandemic forcing a new digital revolution, society migrated most of its processes online. From office work to doctor’s appointments, the internet now carries the additional burden of millions of people and thousands of unprepared companies. This created a ton of other demand for faster internet speeds.

More than that, companies have now seen the benefits of remote working, not just for their worker’s sanity but also for their bottom line. As a result, they are likely to continue the practice even after the pandemic.

This is a perfect environment for a network provider to blossom on. Marvell, a primary provider of 5G tech, only took about four months to rise 39.54% in prices.

Investing in a Post-Pandemic World

The world economy has undoubtedly suffered from the virus, but some parts show clear signs of flourishing. If you’re planning on investing for the long term, look into leading stocks in eCommerce, food delivery, gaming, biotechnology, and 5G tech.