Possible Investment Opportunities after the Pandemic

I don't think it can be understated how bad this outbreak could/will get; too many virologists and infectious disease experts are in agreement about the tenacity of this virus. Another group of people in agreement are stock brokers and financial experts; soon will be the time to invest in the stock market.

There is always a risk with investing, as anyone who had stocks saw with the plummet of every major index. There is also the possibility of massive gains, if you can invest and leave the money there until the indexes bounce back. Let's take a look at some investment opportunities that should bounce back big after the outbreak i over.

1.) Vacations

I think this one will take a very long while to go back to being as profitable as it once was. There is too much distrust and xenophobia in the world at the moment, but eventually I do believe people will start spending money to get out and see the world. So, which industries should we invest in?

I think cruise ships will always have a place in the tourism economy. They are affordable, have far more included for the price than many other vacation options, and allow people to visit vacation destinations without being cramped in a plane for hours on end. The problem with cruises right now is that they are the perfect place to catch a disease, and now that people have awoken to that realization it will take serious work by the individual cruise lines to change that public perception of themselves as well as a long period of time without incidents before people are lining up to buy tickets.

Airlines, no matter how bad things get in the near future, will always exist in this world. There is no other mode of travel that gets us to vacation destinations as fast and efficiently as aircraft, and due to the outbreak they are being forced to run at diminished capacity. What does that mean for travelers in the future? The last time the airline companies received a government bailout in the United States they used the money to perform a massive stock buy back from share holders. We lost our voice in the industry, and not long after we saw seat sizes shrink, ticket prices and fees rise, and flying became akin to moving cattle; pack as many as you can in, no matter how uncomfortable. The airlines that want to be competitive after the outbreak will need to be more comfortable, with fewer fees and more reasonable ticket prices, and with a level of service not seen in decades.

2.) Luxury items

People enjoy shopping, as we see every holiday season, especially here in the United States where consumerism for many is nearly a religion. There is a need to constantly purchase the biggest, newest, and shiniest that likely will not get to be appeased in any real way for many months. Once the outbreak is over the flood gates will open and people will return to work where possible, earn their money, and begin purchasing again.

Electronics would be people's first choice when considering stocks and investments, because people always need the newest phone or the next size up in televisions. To me, with the availability of online shopping being so prevalent, you WILL notice an increase in electronics sales but I don't think it will be a massive jump. Yes, people will buy the new television around Christmas if the entire economy hasn't tanked. I think a better option might be phones. Samsung and Apple, the two largest phone brands in the world, will likely be where the action is. People were already waiting for the new Apple phones to drop this year, and with the announcement they would be pushed back due to the Coronavirus there will be many who won't be able to pass on the opportunity once it finally does get released. If you can get either stock, I would invest now.

I think we will see a surge in outdoor activities around the world, especially after so many being cooped up in their houses for so long. Many of us can go outside right now, but won't out of fear of catching the virus. I have always been a sportsman, and for me outdoor activities like fishing and camping are vital to my livelihood. Many people will view these activities as exciting and new, especially compared to the painted walls of their living room. I can't predict how big the jump in these markets will be, no one can, but I can see there being a rise in sporting equipment, firearms sales, and home & garden items.

3.) Experiences

People will go back to restaurants, and when that happens you will see a massive jump in stock prices. If you have any money to invest, this is one of the more "guaranteed" options; there are no guarantees, and don't ever let anyone tell you there is, but there are safer options than most. Many people didn't realize how dependent on restaurants they were until the dining rooms closed. Even though there is take out and drive thru available in most areas, most people miss the experience of dining out. Steakhouses, especially, will see their stock values soar.

Movie theaters may or may not be a good option. Streaming services were already trending up compared to ticket sales, as many people find it more enjoyable to sit on the couch in their pajamas. For those in quarantine, who have been doing just that on a daily basis, it might be a much needed change. I can see share values raise IF they aren't forced to shut down too many locations during the outbreak.

Theme parks might be on the way out, and there will probably be many who disagree with me. I don't mean to say that they won't be there anymore, but I do think that with this outbreak being so contagious there will be many who reconsider travelling to see them as often as they once did, even after it's contained. There will likely be a huge surge in the beginning, and then we'll see them level off to pre-outbreak conditions or lower.

4.) Rental Properties and Real Estate

This is one that I will likely catch flak over, but I am from eastern Kentucky; we call it like we see it. There are many people who are going to lose their jobs. We are already seeing it happen, and then next thing that happens after that? You can't pay AT LEAST one of your major expenses. It usually doesn't take very long until you are behind on your rent/mortgage. Some states are expanding their unemployment benefits, and with the thought of receiving helicopter money from the US government, there are those who think everything is going to work out for everyone. Sorry, pistol, but you're flat out wrong.

If I have learned one thing about people in general it is that, given enough money to eat or play, people will play. The money that should be going to rent or mortgage will likely get spent on something unimportant, and then people will be forced to move out. Does that make rental properties a good choice? Yes and No. People will always need a place to stay, but what happens if they don't pay? There are sites like Fundrise that allow you to invest in a rental property portfolio and earn without having to deal with the renters yourself.

With interest rates from the Fed so low it might be time to consider purchasing a fixer upper. Flipping a house is no small or easy task, but if you have plenty of time on your hands, like so many of us do now, it is something to think about. There are tons of videos on YouTube and other websites to learn how to do much of the work yourself.

In summary, there are investment opportunities on the horizon. No one call tell you exactly what will happen, but the above ideas are some pretty fair assumptions, in my opinion, as to how things might play out. Please, remember that any investment comes with risks, and carefully consider your options before putting your money into anything. Feel free to check out my other posts in this blog to find out about earning a passive income and making money online.