Investment 2021 | Investment Post-COVID | Films4U

Investment 2021 | Investment Post-COVID | Films4U

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Where to invest after COVID-19

Coronavirus has changed the global economic landscape. 2020 has been a year of surprises, with well-established brands suffering losses – and, in some cases, disappearing altogether. In more general terms, some sectors have flourished, while others have suffered extensive losses.

What does this mean for investment in 2021? Should investors target those industries enjoying great growth during this crisis – or will such businesses fall by the wayside when life returns to normal?

The global economy could change in a heartbeat or find itself permanently transformed, depending on how effective a solution worldwide governments and the pharmaceutical industry can come to.

How has coronavirus impacted the investment sector?

This is an important question for anyone considering investment in 2021. It’s true to say that certain sectors have flourished despite the harsh economic topography we’re now forced to navigate. The advent of remote working has seen a rise due to the increased use of online meeting services like Zoom, Google Hangouts, and Skype. Likewise, e-commerce has grown exponentially since March 2020.

When forecasting ahead and strategising investment for 2021, can we depend on these profitable sectors and ignore those that have faltered during this crisis (the aviation and leisure industries spring to mind here)? Or are these companies showing great resilience in the face of adversity – making them legitimate game for investors willing to take long-term risks and gamble?

Key to navigating this pandemic – and preparing ideas for investment in 2021 – is to perhaps look at those companies best adapting to the problem. These will be the ones who seem best at strategy, making them a better bet for anyone keen to make money from investment in 2021.

What sectors have been most affected?

Some industries have been harder hit than others. The leisure sector was one of COVID-19’s biggest casualties. Social distancing rules made it hard for 24/7 operations – like The Gym Group and PureGym – to convince the government they could keep their members safe.

The aviation sector also suffered losses, caused in part by enforced holiday cancellations – due to certain locations being deemed too dangerous to travel to. One notable example was the initial collapse of FlyBe: a highly successful aviation operator flying out of Southampton airport (it has since been rescued).

The restaurant industry experienced its fair share of economic hardship too. During the first lockdown, eating establishments were forced to temporarily close their doors. Some managed to recoup lost profits by focussing on delivery service instead. But, despite this, even chains like Pizza express closed branches permanently to offset losses.

These are just three examples of sectors hard hit during the crisis. Depending on how long-term your view is, you may still view these industries as viable investment opportunities in 2021.

What will stay the same for investment in 2021?

Almost every sector has experienced at least some form of change due to the pandemic. Not least, the very way we do business – and how people work for businesses – has changed. These shifts may or may not be irrevocable. For now, though, expect social distancing and lockdown protocols to remain, although Boris Johnson recently said he will ensure there are no social distancing measures in place by October 2021. 

 

What does this mean in terms of your 2021 investment strategy?

Established brands

There is a case for putting money into big brand names capable of defence. Apple is currently worth trillions and still seems to be hitting its stride. In a volatile market, investors may prefer to tread the path well-trodden rather than take risks that may have been more attractive in a more stable period.

 

Growth sectors

Those sectors showing growth will continue to be attractive to anyone planning an investment strategy for 2021. E-commerce has experienced a boom, home fitness is on the rise, and people are using online video platforms more than ever.

It all depends

Of course, everything pivots around the development of a successful vaccine. And scientists are still trying to understand how COVID-19 works. What implications will this have on a cure? How long will it take for us to get back to some semblance or normality?

Where to invest after COVID

As indicated, certain sectors are growing in spite of the crisis. These industries, therefore, have a certain allure for investors seeking profitable challenges. 

Video conferencing platforms

With the majority of people now working from home, video conferencing software is an essential tool for businesses that need to communicate with their teams, customers, and stakeholders. Demand for services like Zoom, Skype, and Google Hangouts has increased exponentially, making this sector a viable investment 2021 opportunity.

Movie streaming services

Film investors will be pleased to know that the demand for streaming services has increased since March 2020. People stuck at home – due to social distancing rules and other restrictive measures – have sought distraction in escapism. Binge-watching the latest series or movie on Netflix, Amazon Prime, or YouTube Movies has become something of a not-so-guilty pleasure.

E-Commerce platforms

E-commerce has continued to grow in popularity. Consumers have flocked online to buy DIY essentials so they can immerse themselves in projects – preventing boredom or cabin fever from setting in. Other non-essential items seem just as popular. This means that already-successful e-commerce platforms like Amazon, eBay, and WooCommerce are experiencing even higher profit margins.

These aren’t the only successful sectors arguably ripe for investment in 2021. It’s also good to see that the movie business is still thriving – providing us all with some much-needed laughs and thrills at a challenging time.

Now’s a good time for film financiers

If you’ve been thinking about investing in the film industry, now’s a good time to do so. As already touched upon, streaming services have grown in popularity and are extremely profitable.

Films4U has a strong record of success, as evidenced by the examples on our website. We have 100 years of combined experience and are confident enough to guarantee your film distribution if you choose us.

Why not get in touch to discuss your plans for investment in 2021. We’d welcome the opportunity to answer your questions. You can also register your interest by completing our online application form.

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