What Sectors Look Promising Post COVID-19?
Updated: Jan 28
At the beginning of the pandemic the stock market took a heavy hit and dramatically dropped in value. After the major sell offs the market finally started to recover favoring technology stocks like Zoom, Microsoft, Amazon, and many others. With the end of the pandemic in sight, many may wonder what sectors will boom once this madness is over? Thinking about it logically, no one was traveling during the pandemic causing oil prices and airline companies to suffer. The airline companies took on large amounts of debt to finance operations. However, with things starting to open back up, and people anxious to get out, the airlines should see more traffic soon. Even though productivity should pick up, one should be aware of the amount of debt the airlines took on and should consider airlines an aggressive investment. Oil also has a promising outlook in the future. With people out driving more and the airlines demanding more fuel, oil prices should start to increase once more and more people have been vaccinated. Another sector that looks promising is the energy sector. According to UBS, “Progress was made toward a more sustainable energy mix.” Clean energy was attractive in 2020 and, “in a recent report, the IEA predicted renewables will overtake coal in share of electricity generation by 2025.” With these sectors in mind, make sure to address your financial advisor before making any decisions.
UBS House View Investment Strategy Guide