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There is a strong correlation between the investment market and the economic situation of the country. While investments in various sectors drive growth in the economy, the ups and downs in the economic system stamp their mark on the investment market.

The novel coronavirus brought forth many challenges for the global economy. As a result, the new market situation shook the confidence of many investors in regard to their financial plans. No wonder, many investors adjusted their investment portfolios and reframed their strategies.

Let’s explore the global impact of the pandemic on various investment sectors.

Finance

In the pre-pandemic world, this was the most attractive sector for investors. The novel COVID-19 came to prove investing in finance can be too risky as prices can drop sharply overnight.

Studies proved investors who had put their money in developed countries, experienced the biggest decline in expectations.

Financial analysts have recorded rapid transformation in the financial industry in response to the pandemic growth. The new investment trends show that the key lesson learned from the situation was that it is much safer to invest in tangible assets than in non-tangible ones.

Real Estate

The impact of COVID-19 differs hugely depending on the property type. While shopping centers, restaurants, gyms, and office areas have been hit the hardest, the world has recorded an increase in demand when it comes to personal properties. Fact is, it has taken the trend of living away from the city hustle and bustle to a whole new level. Here is why:

• Many companies located in different countries were satisfied with the trial run of the work-from-home model. While in the beginning home desks were enough, currently many employees are recreating their offices at home. The ideal situation is affording a house away from big cities and ensuring you have both indoor and outdoor offices.
• The pandemic has boosted online shopping. Virtual communication is also a common practice now. It means you don’t have to be physically located in the city in order to live, work and socialize with others.

Information Technologies

Companies operating in the tech sector stepped up to support the world to handle the new reality. Those providing tools for work-from-home lifestyle, virtual interactions, online shopping, and remote payments recorded a sharp increase in demand. To adapt to the new situations, many IT organizations delivering other services changed their profiles. The world recorded a hockey-stick increase in the number of startups that support the accelerated digital transformation.

To sum up, even though the tech sector feels the Coronavirus crisis and inflation, the demand for this sector is higher than ever.

Agriculture

Although the pandemic made quite an impact on some agricultural businesses, the sector, on the whole, proved to be the most “weather-resistant” investment sector out there. Floricultural businesses suffered the most. Businesses serving as a supplier to the catering sector had to diversify their profiles. No negative trends have been observed when it comes to planting fruit, vegetables, wheat, and nuts.

The new situation showed us once again that market inflation goes hand in hand with product prices (land prices as well), that’s why the economic shocks and uncertainty mostly bypassed the investments in the agricultural sector.

One of the most important lessons that investors took from the situation is the understanding that there can always be unpredictable situations and they should not be tempted to invest in promising short-term opportunities.

Exploring low-risk investment opportunities? At Kingsmen Investments, we have a number of investment options that ensure a high return on investment. 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!