COVID-19 has brought many industries worldwide to a standstill. Experts believe that the pandemic is going to lead to a global recession, one that is much larger than the one we experienced in 2008.
With pay-cuts and layoffs happening far and wide, the demand for most goods and services is falling with no end in sight. However, some businesses are seeing an uptick in demand from consumers during this crisis. So here are 5 things to invest in when the recession hits.
1. Remote working or work from home software
Many businesses have opted to have their employees work from home in an effort to stop the spread of COVID-19. These employees often utilize remote working or work from home software to perform their official duties.
Companies who make such software have seen a surge in popularity as this pandemic continues to persist. So it may be a wise choice to invest in one of these software companies.
2. E-commerce sites that sell essential goods
Many people have turned to purchase essential goods from e-commerce sites in an effort to avoid stepping outside during the crisis. People will continue to purchase essential goods from these sites even during a recession, so it’s safe to assume these e-commerce sites would be great to invest in.
3. Companies that produce non-perishable food items
The uncertainty around COVID-19 and the recession have driven many people to purchase large amounts of non-perishable food items. Companies that produce these goods are likely to continue seeing good demand from customers in the future, so they may be worth investing in.
4. Real estate
Real estate can be a great investment, especially in areas where the value of properties is known to appreciate over time. Renting out your properties can provide you with a steady income during the recession, as long as your property is occupied by a tenant.
5. Precious metals
Gold and silver are commonly invested in before the onset of a recession. The demand for these metals usually drives up their price during times of economic uncertainty, so it’s best to invest early! Nobody knows when this pandemic will be resolved, so it’s best to prepare yourself for the coming recession with some sound investments.