Safety measures, in light of the rise of the COVID-19 virus, continue to force much of the world into lockdown conditions. As such, many industries have come to a standstill, and millions have had to put their lives on hold. Investment opportunities, too, seem to be curbed, and economic damage is rife.
Therefore, traders are, naturally, looking for ways to break back into the game once the lockdown measures lift. Will the pressures experienced through this time move more people towards smarter investment opportunities? Will we move away from fiat money altogether? Time will tell, but a few trends are on the horizon.
More attention on experts
Trading experts and investors, of course, have plenty of followers and fans. That is nothing new. However, in the event of lockdown measures lifting, it seems that more and more of us will be looking to see what the experts do first. While in some quarters, the idea of following expert advice can seem a little rote, it’s a good idea to follow the leader when it comes to global trading.
People will likely look to Alex Friedman, for example, whose Jackson Hole Economics continues to provide advice on the world stage as far as finance is concerned. Everyday investors, particularly those setting up from home, will likely want to follow as many experienced hands as they can.
However, this is a unique situation. The uniqueness of the COVID-19 crisis means that even experienced hands are likely to want to see what the biggest names in the world of finance are doing.
A move to crypto
Cryptocurrency laws vary all over the world. That is mostly thanks to the fact that many governments and lawmakers remain unclear on what the currency is, and how it works. Crucially, following lockdown, there will be a need for a global standard in terms of investing. Crypto, such as Bitcoin, of course, provide a clear, international trading standard which is likely to appeal to anyone hoping to break free from the barriers and red tape of traditional investments and exchanges.
If the lockdown has taught us anything, it is that much of our lives can take place at home and through the benefits of modern technology. Crypto trading is volatile. However, it remains hugely popular. Expert traders will always tell you that the peaks are worth waiting for. Given that physical trading and investing took significant hits during this time, it will be unsurprising to see crypto to take an upturn in the months to come.
Another remarkable knock-on effect of the pandemic is the fact that carbon emissions and pollution seem to be decreasing, if only slightly. Reduced emissions and pollution are likely to have a knock-on effect on people investing in green technology and projects. Pressure on everyday people to make changes to help save the planet has never been fiercer.
What’s more, studies suggest that green projects and roles appear to benefit people more in terms of revenue and job creation. With green investment, there is less chance of volatility as far as job security is concerned.
The way the environment is adapting to a lack of emissions and pollution during lockdown shows that positive change is possible. It is already inspiring people to think carefully about how they may wish to invest post-lockdown measures. It took conditions of this magnitude to show many investors quite what we depend on in terms of outdated and energy-inefficient resources.
Healthcare will spike
The most significant industry to witness positive spikes of investment during lockdown is, of course, the healthcare industry. Increasing demand for personal protection equipment, medicine, and ventilation units shows that the world needs more in terms of healthcare supply than the base amount it currently benefits from.
At present, increasing demand doesn’t mean healthy revenue spikes for the industry. What it does mean is that the industry is under constant pressure. Post-lockdown, however, it is likely that many will invest more money in healthcare provisions. Why? As a result of ‘knowing better,’ in many cases.
Many countries will seek to invest in enhanced healthcare options purely to prevent falling to viruses such as COVID-19 again in the future. It means that private investors may also invest heavily in healthcare stock as demand is likely to spike.
Some may see this move as unethical. However, the healthcare industry has never been more in demand, and all traders are likely to follow the money.
An uncertain future
With different countries imposing different lockdown rules the world over, it’s still unclear quite what the overall route is out of COVID-19. However, it remains clear that investors will be making a few changes to their options once we are all able to get out in the open again.