Coronavirus - Get the latest updates and resources from MyWalletHero - Find out more.
Advertiser Disclosure

Investing post-pandemic: 3 sectors showing signs of recovery

Investing post-pandemic: 3 sectors showing signs of recovery
Image source: Getty Images

The past year has impacted just about every part of the world in some way. Thankfully, it looks like there’s light at the end of the tunnel. Multiple vaccines are rolling out in a number of countries. This potential beginning of the end means that despite the current lockdown, we can cautiously start looking towards post-pandemic investing.

Sectors improving with recent good news

The coronavirus pandemic and various lockdown measures around the world have had a mixed effect on the market. Some businesses have really suffered, whilst Pfizer shares and other US shares have actually soared.

Research from IG suggests that certain industries have been showing positive signs of recovery since November.

Let’s take a look at three sectors in particular that are looking like they’re ready for investing in a post-pandemic world.

1. Energy +12.4%

The energy sector was one of the hardest-hit during the thick of the pandemic. It slumped by over 35% between the months of February and October 2020.

However, with the end of the pandemic now in sight, the energy sector has managed to rebound strongly in November.

This could be a positive signal that energy investing post-pandemic is aiming to make up for the significant losses posted during 2020.

2. Financials +6.7%

The usually reliable financial sector has been extremely unpredictable. This led to a 13% drop in returns for investors during the middle of 2020.

Throughout the year, we saw record levels of unemployment, massive financial stimulus, and high government borrowing. There’s also been historically low interest rates and surprisingly large amounts of money being saved. All this topsy-turvy activity has sent out plenty of mixed messages to the financial sector.

Recently, however, things are beginning to stabilise. The promise of a vaccine has seen the financial sector recover around half of its losses. As businesses and countries continue to adapt and evolve to the ongoing situation, investing post-pandemic in financials will hopefully see a continuation of the ground made recently.

3. Real Estate +4.7%

When things were at their worst, there was a lot of uncertainty around property and real estate. It was difficult to predict what the knock-on effect of the coronavirus pandemic would be. The result was that this sturdy sector took a big knock downwards of over 18%.

Like everyone else, this sector is changing and adapting with the times in order to satisfy the evolving demands in the market.

Now that the dust is beginning to settle and everyone is looking towards building a better future, post-pandemic investing in real estate is showing encouraging signs of a strong recovery.

Which sectors will continue to perform for post-pandemic investing?

Do you think the sectors above will continue to rebound? Perhaps there are other industries you think are going to flourish in a post-pandemic world.

Either way, using one of our top-rated share dealing accounts can help you find value as the market recovers.

There’s still more uncertainty ahead, but resilience is in our nature and I’m sure there are going to be plenty more success stories in the coming months.

Rated 5 stars out of 5 by MyWalletHero…

Trade UK shares for just £2.95 and US shares for just $3.95 — with no platform fee!

The FinecoBank* Multi-Currency Trading Account offers UK investors highly competitive share-dealing rates across 26 global markets.

Use promo code FIN100-ML today and enjoy up to 100 free trades within your first three months!

*Affiliate Partner. Important information and risk disclaimer: The value of shares and any income produced can fall as well as rise, and you may get back less than you invest. Exchange rate fluctuations can reduce the sterling value of any overseas holdings.

Some offers on MyWalletHero are from our partners — it’s how we make money and keep this site going. But does that impact our ratings? Nope. Our commitment is to you. If a product isn’t any good, our rating will reflect that, or we won’t list it at all. Also, while we aim to feature the best products available, we do not review every product on the market. Learn more here. The statements above are The Motley Fool’s alone and have not been provided or endorsed by bank advertisers. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. The Motley Fool UK has recommended Barclays, Hargreaves Lansdown, HSBC Holdings, Lloyds Banking Group, Mastercard, and Tesco.