These days, it doesn’t matter what market investors are looking at. All they’re going to see is red. The world has officially entered into the bear market due to the recent COVID-19 pandemic.
This news is enough to scare anyone who’s putting a lot of their faith—and money—on their portfolio. Fortunately, for the brave ones, this is an excellent time to buy. The other good news is that some industries may offer attractive returns even during these trying times.
1. Fintech Companies
Now is the right time to learn how to invest in fintech companies. As its name suggests, these are firms that power financial services with technology. These include:
- Electronic money transfers such as PayPal
- Cryptocurrencies including Bitcoin
- Stock trading platforms such as Schwab and Ameritrade
- Payment processing such as Stripe
According to the Business Research Company, the industry will achieve an annual growth rate of almost 25% from 2018 to 2022. Within the same period, its market value will increase from $127.66 billion to over $300 billion.
Each of these segments is also looking bright. The cryptocurrency market, for example, may achieve a global valuation of more than $800 million by 2024, according to Markets and Markets. From 2019 until the end of the forecast period, the compound annual growth rate will be 4.7%.
The coronavirus pandemic now highlights the many benefits of fintech platforms. They can perform cashless payments and pay bills anytime, anywhere. They can start investing or even open retirement accounts and buy insurance.
Healthcare is a more familiar industry that can generate excellent returns. For one, it already accounts for a significant part of the country’s economy. Second, the demand for it is high:
- The country has an aging population. In 2018 alone, the US Census Bureau revealed that 16% of the residents are already 65 years old and above.
- People are also living longer. The risks of developing chronic diseases increase.
- More Americans are interested in being healthy. According to the American Heart Foundation, over 40% said they always looked for healthy options when grocery shopping.
Grandview Research, meanwhile, forecasted that the home healthcare market would achieve a CAGR of 7.9% from 2020 to 2027. In 2019, it already had a value of $281.8 billion.
Healthcare itself is broad, and so investors can focus on those that are familiar or close to their cause or passion. These include the following:
- Vitamins and supplements
- 3D printing of organs
- Hospice and palliative care management
- Clinic franchises and management
- Vaccines and drugs
- Medical devices
3. Emerging Tech
One of the exciting fields to invest in is emerging tech. It refers to new types of tech or those that are already undergoing innovation. An excellent example is mobile banking. That’s why when people invest in fintech companies, they are also immersing themselves in emerging tech.
Other areas that are gaining traction are:
- Artificial intelligence (AI)
- Machine learning
- Virtual reality (VR)
- Augmented reality (AR)
- Software as a service (SaaS)
- Drone technology
- Internet of things (IoT)
- Home automation
- Big data and analytics
- 3D printing or additive manufacturing
Robotics, for instance, may grow up to 25% annually from 2020 to 2025, according to Mordor Intelligence. This technology is already present in many industries, such as healthcare. Many hospitals these days use robotic arms to perform surgery for higher accuracy and reduced human error.
It’s unclear when markets are going to bounce back, but waiting for it to happen may only be wasting time. It may be best to look for the silver lining—three markets that are gaining ground despite the pandemic.