The unexpected events of the past three years spurred a tremendous change in how the current economy functions. The pandemic functioned as a catalyst for widespread reforms in the health, labor, and economy sectors. In the wake of this challenging time, an extensive array of investment opportunities has been made available as a result of the economy reopening its doors. If you’re thinking about making and building investments, the post-pandemic period might be the perfect time to start.
Emergency funds are more relevant than ever.
If there’s anything the pandemic taught us, it’s that we should always think ahead when it comes to our finances. A Forbes survey from the past year found that about 40% of individuals with emergency funds accessed their accounts, with 73.3% using at least half and another 29% using the entirety of the fund. Nationwide lockdowns significantly impacted the job market. As a preemptive measure to these unforeseen circumstances, financial advisors recommend keeping and growing an emergency fund. Generally, saving up for at least three to six month’s worth of living expenses is recommended by experts. However, different situations call for different savings strategies. Now is the perfect time to review several investment options to ensure that your emergency funds can steadily grow and sustain you in cases of unplanned expenses.
F&B and travel industries are reopening.
The F&B and the travel sector are two of the industries that took a significant hit during the pandemic. The extensive pauses in their operations drove their respective markets down, subsequently resulting in a dip in prices. Taking advantage of this plunge in the market could serve as the right investment opening you’re seeking. As the world gradually recovers from the effects of the pandemic, the F&B and travel sectors are rising at an upward trajectory, clearing the way for a significant rise in investment returns. It is understandably tempting to wait until economic matters have fully calmed down and recovered, but the investment ship might have already sailed by then. As Warren Buffett said, “time is the friend of the wonderful business, the enemy of the mediocre.” Getting a foot in the door now is already a good headway to achieving positive returns.
Golden opportunities found in the tech industry.
One industry-specific lesson to be found after the pandemic is that technology is no longer the future – it is the now. In a time of worldwide lockdowns, technology kept the economy running. Remote work, digital retail transactions, and automation are just some of the things that technology facilitated when the world was put on pause. While it may seem like investing in tech the period after the pandemic might seem too late, this is not the case. The future of tech innovations is only just beginning. Tapping into the market early on might just be the right financial move. To get yourself in a good starting investment position, it’s best to do preliminary work and look into an index to track the technological sector or consult a financial advisor.
The wisest approach to making investments is doing thorough research and finding the right timing. To help guide you on your investment decisions, consult our team at AIX Investment Group.