One of the dominant news stories over the last number of months has been the impact the unfolding COVID-19 pandemic has had on the global economy. And as governments across the world struggle to contain the spread of the virus, it is not only the health of citizens they have to worry about.
The economic impact of the pandemic has not been felt evenly across the economy however, with some industries showing positive growth trends despite the government enforced lockdowns. But what are some of the key sectors we should be keeping an eye on in 2020, and how can we incorporate them into our trading and investment strategies?
While the COVID-19 pandemic might be wreaking havoc on financial markets across the globe, this has not deterred thousands of day traders who make a living from the currency markets. In fact, given how volatile currency prices are at present, this creates plenty of opportunities to turn a profit. Interestingly, the forex markets have also seen a surge in trading volume because millions of us are now working from home during the day. According to a recent article from the Japan Times, trading volume in margin accounts more than doubled in March and April, as thousands of salarymen found themselves at home and able to moonlight as day traders during working hours. As a result, there was an increase in brokers with demo accounts trying out new platforms hoping to make the best of the volatile market conditions.
Airline and Travel
Although the airline and travel industry has arguably been the hardest hit of any sector as a result of the global COVID-19 pandemic, that does not mean it will never recover. Indeed, although at this minute some tourist destinations remain closed off to visitors and airports are running flights at the lowest possible capacity, that will not always be the case. It seems inevitable that the airline and travel industry will bounce back over time, especially given the steady growth it had seen in the months and years just before the pandemic broke out. In fact, over the last few years, the travel and aviation industry had been two of the strongest performing sectors since the last recession. For investors looking for long-term investments with the potential for a lot of growth, this means that equities in this industry are essentially undergoing a massive discount.
One of the common responses by governments to the unfolding COVID-19 pandemic was the issuing of stay at home and self-isolation orders. They saw us confined to our homes to contain the spread of the virus. As such, eCommerce and delivery platforms like Amazon and Deliveroo saw massive increases in activity, with people unable to leave their homes to shop and buy food. Another industry this measure affected was the gaming industry, thanks mainly to government-enforced lockdowns. With these still in place for millions across the globe, it looks like the gaming industry will continue to provide a vital source of entertainment for those of us still stuck at home.