Nearly two years in and the pandemic has given us plenty of new tricks.
We’ve worked and learned from home instead of offices and schools. We’ve had our groceries delivered to our doorsteps rather than making supermarket trips. And we’ve had family events over Zoom as an alternative to traveling.
Businesses have adapted, too. Companies adjusted their physical store layouts to follow social-distancing guidelines. And they’ve found ways to accommodate increased online sales.
We’ve all definitely learned to cope with the effects of COVID-19 on the world.
But with vaccines and easing restrictions, we’ve also seen some things go back to how they were before.
And knowing which of our new tricks will last and which will change back will be key to building your nest egg…
The 2-Track Recovery Continues
As Alpha Investor founder Charles Mizrahi has said, we’re looking at a two-track future for our economy.
That’s why he warned you early on to not buy into businesses such as movie theaters, airlines, restaurants and retailers without an online presence.
It was a no-brainer. They saw much of their business evaporate. And although some of them are surviving, most are still feeling the strain even as the economy has reopened. It’ll be tough for them to rebound even in the long haul.
But knowing which kinds of stocks to avoid so you don’t lose any of your retirement funds is only half of the picture.
So, Charles also told you which kinds of businesses would thrive — regardless of pandemic-related conditions.
If you want your portfolio to be best prepared for what’s ahead, these are the industries you want to be in…
These Mega Trends Will Continue Higher
Health care, technology, finance, Internet of Things…
These are just a few of the industries that Charles is keeping his eye on. Because they have massive tailwinds pushing them forward.
Leading companies in these industries have the resources and ability to diversify and adapt to our current situation and expand their profits. And as dominant players, they also had reliable businesses even before COVID-19 hit.
So, they’ll continue to make money no matter what happens next.
Think about huge tech trends like streaming, e-commerce and the Subscription of Everything. They were already growing before our world changed.
For example, while total retail sales growth decreased from 4.7% in 2018 to 3.4% in 2019 … e-commerce retail sales actually increased from 13.6% to 14.9%.
Or take financial technology. The fintech revolution is being powered by apps, software and devices replacing cash and banking. And since the world started reopening from COVID-19, more and more retail locations have preferred these kinds of contactless payments.
The pandemic has forced people who didn’t adopt these technologies before to see how valuable they can be. We doubt they’ll exclusively go back to the old way of doing things now that they know there’s an easier way.
So, stocks in these areas will lead the way, no matter what our post-pandemic future holds. It’s a win-win. And if you want to get into their growth, there’s an easy way to do so today.
The Vanguard Information Technology ETF (NYSE: VGT) holds a basket of 330 top tech stocks in these areas showing strength across the board — like Adobe, PayPal and Apple.
As the two-track recovery continues, we’ll keep updating you on the best ways to take advantage.
We expect that many of the lasting pandemic-driven shifts we see will be in technology. So, don’t let these mega trends pass you by.
Regards,
Senior Managing Editor, American Investor Today
