Recession-Proof Industries: Investing Sectors That Can Benefit From COVID-19

Daniel Penzing
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There are a few industries benefiting from the COVID-19 pandemic. Read on to find out which ones they are.

Ever since COVID-19 was reported, the global economy is threatened to implode as a result. With over 420 million people sick as of now and over 38 million projected to become infected, the worst-case-scenario is absolute chaos.

Authorities are doing all they can, ensuring that the first cases of COVID-19 are reported to the WHO immediately as well as restricting travel from known affected areas. That said, the world has little room to fully stop the spread of this virus, let alone contain it.

With governments all over the globe scrambling to regain what little order they can, the world economy will be in chaos.

This is by no means the end of the world but it is certainly not a pleasant scenario. With many of you having investments, you will obviously be looking to protect them from this global pandemic and any other bad investments you may have.

Here are a few industries that are relatively less reliant on the overall economy and that will appreciate during a time of trouble.

In this guide:

Every business cycle is characterized by different specific patterns. Some of these characteristics change with time. An excellent example of this is the equipment of sophisticated drugs that can be used in the medical field.

Firms involved in the manufacture of this type of equipment are surely going to benefit from any upcoming legislation, especially from the new bill known as the COVID-19 act.

The bill hopes to improve the outcome of medical treatment in the country by way of promotion of the development of innovative drugs and devices aimed at the prevention of disease.

The new legislation also hopes to oversee the further advancement of healthcare technology that would reduce healthcare costs. This bill was passed on December 19, 2012, and it requires the review of a certain amount of medical devices as part of its requirement.

Business models will change because of this bill, and it is a pertinent point that companies which do not invest to adapt to the new standards will eventually fail.

Companies or medical device companies which have focused a lot on biotechnology and medical devices will surely hope to gain from the passage of the bill.

For instance, a firm like Stryker, which is a well-known maker of medical devices, will eventually benefit from the passing of this bill.

How COVID-19 Is Impacting the Economy

When it comes to industry sectors, we need to take a look at what is changing in the economy.

Comprehensive Income, Dividends and Value-Added Tax (CIVAT), share trading and small-and medium-sized companies are the four key factors currently effecting the economy. These sectors have been identified as the best industries to bet on.

CIVAT applies a 19%VAT to the value generated by any sector, making the overall VAT rate higher in sectors that generate value than in those that do not.

According to local financial experts, there are four industries that could benefit from this change. These are the financial, energy, real estate and telecommunications sectors.

These sectors are benefiting due to the fact that they can all create earnings. It is in these industries where investors are looking to make money.

The physical and industrial sectors, on the other hand, will seem to have less earnings. This is due to the fact that they do not create value and that they tend to be less affected by CIVAT.

There is, however, an exception to the rule … the energy sectors. This sector is made up of large companies that provide more value than most.

Four Recession-Proof Industries That Can Benefit From COVID-19

Covid-19 (Official short name) or The 19th Amendment Act 2018 was passed by the Maldivian Parliament yesterday to prevent the 'militarization of politics'.

This was mostly a response to the Island nation's recent presidential crises which were not resolved through the democratic process due to the involvement of the military.

After this amendment was passed the political parties are wondering which way the political environment will shift once again and the people are trying to see if the whole issue actually gets resolved.

What's COVID :

Covid (The Maldives Islands Council – Usually presided by the elder statesmen among the party leaders) was formed after the first democratically elected government in the country was brought down by a revocation of a martial law in 1988.

That revocation came as a response to Yameen Abdul Gayoom’s plans to extend the martial law and even dissolve the parliament. The council which acted under Gayoom’s instructions revoked the constitutional rights of the elected President Mohamed Nasheed and sent Male' to a judicial coup.

Since 2008 there have been no proceedings to recruit a new COVID but the members of the council were from the Progressive Party of the Maldives.

Stay-at-home Industries

There are many sectors that aren’t reliant on the economic condition of the moment. Take gardening as an example. As long as you have greenhouses, you will always need to grow more vegetables … even when the economy is down. You will still need your vegetables, so you will still have to keep buying their seeds and a greenhouse to keep them in.

The same goes for hobbies. Why should you stop playing your favorite musical instrument or sing in your choir? A recession may mean people are less likely to spend money, but it doesn’t mean they are depriving themselves of things that make them happy.

Other sectors that provide services that stay at home include:

  • Gardening services
  • Heating and air Conditioning repair services
  • Furniture repair services
  • Tutoring services
  • Laundry services
  • {… and, of course …}

Veterinarians (Pet owners will always want to keep their animals healthy).

Consumer Durables

The growth of this sector is dependent to some extent on the growth of the middle class. As the middle class expands, so do the goods required to sustain it. Consumer durables is still the biggest sector in India and comprises of 7 sectors.

The sectors are given below:

A. Pharma

B. Automobile

C. chemicals industries

D. metals & mining

E. Power

F. Construction

G. Equipment & tools

H. FMCG (Indiatel sambhaash is on top of the list)

Before talking about COVID-19 investment, a very important factor, which needs to be mentioned. The stock markets are often volatile, and the returns on investments can be highly sensitive to a range of factors, including stock prices, interest rates, technical analysis and the investor’s own plans and decisions. Because of this, you should never invest money that you cannot afford to lose. As a COVID-19 investment, a listed company is a security based on the shares of stock in an incorporated business. Ownership of stock carries with it the rights of, at a minimum, the right to a share of the company’s profits and the right to a share of its residual assets upon dissolution.

Information Technology

Information technology sector deals with products that make the life of the people easier and convenient. A good example would be the Internet.

The idea of the Internet is to facilitate the movement of information and data, and IT is the medium through which this happens. It is also the branch of engineering that deals with the conception, creation, and use of information technology.

The growth in IT sector has been rapid since the first development began and continues to grow at an extremely fast pace. It is estimated to be growing at 10% in the year 2019.

IT sector has a large range in its products. A few of the general areas include software and hardware, bioinformatics, disruptive technology, and automation and connectivity.

Utilities and Telecommunications

The utilities industry, specifically natural gas and petroleum, is often described as recession-proof because energy always has to be used by someone … even when fuel costs are rising or prices for manufactured goods have fallen.

Telecommunications companies like AT_T and Verizon fall into a similar category because people always have to keep in touch. You don’t have to spend a lot of money on cell phone service. All it takes is a low-cost plan that provides basic service.

Prepare Your Portfolio for the Future of Investing

The economic transformation is already happening on a global scale. Technologies and innovations that have been developed in Silicon Valley over the last thirty years have slowly begun to reshape the way the rest of the world does business.

No area of business is immune to this transformation, but industries are starting to specialize in order to better take advantage of the advantages created by technological change. One of the biggest prospective trends in business today is investing. The financial industry is undergoing an overhaul, and massive opportunities are emerging for the smart investors who can best prepare their portfolios for the future.

In this post, we will discuss why the current state of investing is such a powerful trend and what you can do to make sure that your portfolio is prepared.

Know Your Investment Options

Before you can prepare your portfolio, you need to know what you have to work with. That’s where we come in! At COVID-19 and COVID-Lab, we’ve developed an AI-powered investing platform that takes the stress out of investing. COVID is like your own personal financial advisor, full of the knowledge and insight to help you make the right investment decisions.