The stock market is facing unpredictable and volatile conditions with a great recovery. Sectors like healthcare and IT outperformed others even in the light of the COVID-19 pandemic. The crisis had a devastating impact on hospitality, real estate, banking, automobiles, and energy.
However, many companies from small to large-scale continue to bet on technology. During the post-COVID-19 scenario, the world reinvented itself and settled into new norms to become effective and flexible. The technology expert, Luis Felipe Baca Arbulu has curated a list of sectors in which you can invest in 2022 and beyond to mark long-term growth.
- Real Estate
Real estate has always been a rewarding and challenging sector. The sector remained resilient during the pandemic as home prices were stable with low-interest rates. The industry is witnessing a healthy increase in demand and momentum is expected to hold in upcoming years. From residential to commercial spaces, the market outlook seems bright.
The pharmaceuticals were the top performers in the stock market in 2020, serving as a saviour for investors with great returns. There is a continuous demand for life-saving drugs, immunity boosting supplements, and people are willing to buy healthcare products.
- Information Technology (IT)
IT stocks have been under a lot of pressure still with technological advancements, and IT companies are in a full swing. It makes perfect sense to invest in smart cybersecurity, artificial intelligence, ML models, cloud-based platforms, robotics, and quality management to make your resources more productive.
As power demand is increasing, the power sector is gaining attention lately. Many companies are sharing a utility index like Tata Power, Power Grid, and JSW Energy. Big reforms have already begun, which when implemented, could be life-changing. The industry focuses on power distribution licenses, reducing entry barriers for private players, and enabling customers to choose from various providers.
Banking stocks are under pressure because of reduced offtake of loans during the recession. However, experts predict that the financial sector will do exceptionally well. Companies are likely to drive tech adoption for active management and passive exposures to support inflation levels.
Luis Felipe Baca Arbulu encourages investors to stay calm amid the storm and focus on investing in quality companies to yield long-term success. Ultimately, investors should assess the risk profile, realistic goals, portfolio diversification, and strategies when betting on emerging sectors.