The markets have taken a few significant hits throughout the COVID-19 crisis, with the initial lockdown causing stocks to plunge and the oil crisis hampering the recovery significantly.
However, as more and more countries and states consider a shift away from the lockdown, there are some sectors which are likely to see an unprecedented boost in their short term value, making them highly profitable investments.
Restaurants And Fast-food
The first of these sectors is the restaurant and fast food industry. As people have been in their homes, eating cooked meals for weeks, in all likelihood they will miss spending time at restaurants or more generally eating out.
This was clearly demonstrated in the UK, as when KFC stores started to reopen there were queues down one street and into the next. This is likely to be replicated across the fast-food sector; as people become more able to eat out, demand will see a significant spike.
Profits will see a large increase, and this is a surefire way of benefiting from the restrictions being lifted in the long run.
Fuel companies are also likely to see the benefits of the lockdown being lifted. There have clearly been worries about fuel companies as an investment, proven by the way that many investors withdrew their support, and the price of oil itself became negative.
However, once the world begins to open up again, people will need to use their cars once more, particularly with public transport being discouraged for the time being.
Not only that, but any delayed holidays will likely further increase the profitability of fuel and oil companies. People moving around need fuel, and when companies bounce back you can profit from it.
Finally, wholesale trade will see a significant return to form. As retailers open up again, the value of the high street will significantly increase.
However, some retailers may be risky, as companies such as Primark have had no revenue throughout the lockdown (due to a lack of an e-commerce arm).
To avoid this risk, buying shares in the wholesalers themselves means that you’re casting your net wider, and a single business failing won’t be disastrous for your investments. You can ride on the successes of the wider retail sector.