Investing is key to prevent another great depression. With few alive now that lived through the Great Depression and even fewer that still remember it, it is hard to imagine the scale of poverty that can be unleashed by a stock market collapse. Fortunately, there are detailed records and survivor accounts that we can turn to in order to understand how life could change further thanks to a viral pandemic that has brought most of the globe to an economic standstill.
It is easy to see why countries including the US, UK and even New Zealand have tried to restart their economies, despite their differing levels of containment of the virus, by getting people back to work.
The toll that the coronavirus has already taken on economies can be seen as far back as mid-March when economies started to crash, many before leaders had even considered locking down nations. Until a vaccine has been produced, many people across the globe are unwilling to let life resume as normal, with activities such as attending concerts, sporting events and even spending time with friends and family being ruled out due to the risks involved.
What does this mean for investing?
Understanding the activities people will be unwilling to take part in and those that will see an increased participation actually opens a number of doors for investors. There are also a number of investments that will actually help to stabilise the stock market and allow for economies to recover, rather than spiral into another Great Depression.
Investment in Infrastructure
Investment in infrastructure is one of the best and most effective way to help stimulate the economy of any country. Companies with secure investment generate employment and in turn employment stabilises regional and national economies allowing for recovery.
Investment in Online Prospects
With stay at home orders, lockdowns and people unwilling to leave their home to attend live events, there is certain to be an increase in the consumption of online or virtual entertainment. Investment in companies with long term growth plans in digital futures increases employment opportunities, especially with jobs that allow people to work from home.
Investment in Transport
Though it may seem that speculation on travel and transport may be somewhat risky at this moment in time, the survival of transport industries are essential, not only to keep the world connected, but to allow the transportation of goods between countries.
Investment in Pharmaceutical and Medical Supply
In a world struck by a global pandemic that could see the need for masks, gloves and vaccines to be produced at never before seen levels presents opportunities, especially when there is no way to know when this crisis will end.
Investment in Foods
Finally food stocks are another investment option for those looking to help stimulate growth. Food stocks range across the board, and in a time when restaurants are closing by fast food and takeaway can survive, it is clear that consumers are going to be spending more money not only on cheaper ways of eating out, but those with lower chances of contact. Investment in food production companies that have seen increases in demand might also be an avenue that investors wish to explore.
Want to help stimulate your local and national economy by investing? You might need to speak with a financial advisor. We will be happy to refer you if you want.