Global Investment Trends
The Covid-19 pandemic has caused a financial shock, the effect of which was much bigger than the one caused by the global financial crisis more than a decade ago. In fact, it brought forth a crisis like never before, making the volumes of foreign direct investment fall by one-third to $1 trillion.
Luckily, the worst damage to the investment sector is behind us. This midyear review article attempts to cover the main investment behaviors that the world has been witnessing in the past eight months.
Global investment market speeding ahead
Business confidence and forecasts strongly depend on economic performance. Thanks to the reopening of various businesses, vaccinations, and many other factors, the global economy is at the stage of a robust recovery. A year ago almost everyone has been put under some form of lockdown. They have saved money during the work-from-home situation and now they feel the need to spend more than usual.
The thing is that the business attitude has changed a lot. Currently, all businessmen keep in mind that uncertainties about the future are inevitable, and making predictions is a risky game, but the recovery of the global economy is an undeniable fact for everyone. While a year ago all investors kept their assets locked securely because of the outbreak, now they are interested in investing.
Diversification is the new normal
At Kingsmen, we have forecasted a few months ago (right after easing Covid-19 restrictions) that investors who once ignored the term “diversification’’ and were inclined to invest in big projects, would soon opt for smaller ones. We were right as today everyone avoids depending on sector highs and lows. Investors now consider investing in various sectors so that to protect their money from adverse sector conditions.
We strongly believe this lesson we taught from Covid-19, will have a lifelong effect on the investment market.
Investors sticking with emerging markets
A few months ago we also forecasted that investors would be inclined to invest in emerging markets for portfolio diversification purposes. This forecast was also accurate, and the growing interest in Armenia is the best evidence for it.
Not only do emerging countries make portfolio diversification possible, but also many of them have initiated many investment-friendly policies to overcome the pandemic crisis (Armenia is no exception).
Besides, many emerging markets, which have been hit by the coronavirus, are overcoming the recovery stage at a faster pace than the advanced markets. Based on it, financial specialists currently estimate that financial controls will be much more effective in emerging markets than in developed ones.
New sectors dominating the investment market
Prior to Covid, virtual assets and stocks dominated the investment sector. Market ups and downs made people opt for more tangible assets.
So far, the best performing sectors in 2021 have been mining, realty, power, healthcare, and agriculture. These are safer options, where you’ll never lose all your money overnight. Cash flow is also more predictable in these cases, which is an important factor nowadays.
Interested in investing in Armenia? At Kingsmen Investments, we are ready to address all your concerns and guide you through your investment journey in Armenia. Check out our investment opportunities here or give us a call at (+374) 95 110 301. High return on investment guaranteed!