Crisis-Proof Investment Industries For 2020 | Financial Buzz

Crisis-Proof Investment Industries For 2020

The global COVID-19 pandemic forced at least hundreds of millions of people to be confined to their homes. Many of these people, unfortunately, lost their jobs and a large part of their savings as global stock markets cratered to multi-year lows in March before beginning a rapid recovery.

Veteran investors with advanced knowledge of stock markets and global economics were able to reposition their portfolios to minimize their downside. Once the rebound was underway, they were able to take full advantage of many stocks that generated triple-digit percentage returns off their March lows. But not everyone is an expert in investing — far from it.

Online digital wealth management services and its licensed online investment platform recognize the reality that the vast majority of people with money to invest may not even know what a stock is. These hard-working people now have access to financial products and solutions backed by experts that were previously exclusive to high-net worth individuals.

Focus On The Future

A common investment strategy among the Wall Street hedge fund industry was to offer their clients exposure to crisis-resistant industries. The list of sectors that are susceptible to the pandemic is quite obvious even to many novice investors. Most notably, malls and retailers will likely be void of the same level of traffic they have seen prior to the pandemic as consumers prioritize saving money or don’t find shopping to be fun amid stringent social distancing rules and even mandatory face masks and covering policies. 

Travel and leisure industries will certainly be impacted as well. Fewer people will want to be confined to stuffy and crowded airports only to be confined on a cruise with questionable and best health practices.

But less obvious to retail investors is identifying industries that are resistant to the COVID-19 pandemic and the economic fallout that could last a year or two — if not longer. This is where and its digital wealth management platform offer a solution to novice investors.

The firm’s “Sustainable Growth” portfolio seeks investment opportunities in technologies and trends that experienced rapid growth over the past years and are showing no signs of slowing down despite the pandemic. Even if the rate of growth slows down, it would still outperform other sectors. The fund is backed by in-house experts and analysts and designed specifically to look out towards the future.

One of the more notable examples of a crisis-proof sector that includes in its investment products is cloud computing. The cloud market size was valued by some experts at $272 billion in 2020 and is modeled to grow at an 18% compounded annual growth rate through 2023 to reach $623.3 billion.

Cybersecurity is another industry that is both crisis-proof and poised for years of growth. In fact, the COVID-19 pandemic hasn’t slowed down the pace of cyber attacks and in fact may emphasize the importance of not letting your guard down.

The cybersecurity industry also includes elements of other crisis-proof sectors, including artificial intelligence, machine learning, blockchain, among others. By some estimates, the cybersecurity market is expected to be valued at $152 billion by 2025.

The “Sustainable Growth” fund was launched in late 2018 and rewarded day-one investors with a return of nearly 95%. The fund’s highest monthly return was 9.71%, in part due to the fund manager’s global focus. By focusing on investment opportunities worldwide, portfolio managers and analysts are able to select only the most compelling opportunities.

The U.S. accounts for 35.6% of the fund, followed by the United Kingdom at 19.8%, China at 10.5%, and Canada at 8.6%.

Conclusion: The Recipe For Success

Expert fund managers and analysts at leverage the latest technology to better identify companies in fast-growing sectors that still offer an earnings growth profile with a reasonable or attractive valuation. 

The managers and experts understand the importance of balancing near-term headwinds with long-term growth prospects. Efficient risk management techniques are vital in minimizing downside risk and capitalizing on upside potential.

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