8 Post-COVID-19 Sectors To Watch As Restrictions Lift

No one knows precisely when the COVID-19 pandemic will end. Most experts are hopeful COVID-19 restrictions will end and life will begin returning to normal in the middle of 2021, coinciding with the widespread distribution of an effective vaccine.

Hand Disinfection, Disinfection

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Nobody knows what the recovery will look like once COVID-19 and its associated restrictions lift, but it will benefit you to pay attention to that shape. As more and more experts feel they can accurately predict the recovery’s shape, it will give us a better idea of the smartest investment strategy. Here are some economic recovery stages to keep an eye on:

  • A V-shaped recovery, where the economy recovers immediately and vigorously (likely already passed).
  • A U-shaped recovery, where the economy is stagnant for a while, then recovers fully.
  • A W-shaped recovery, where the economy experiences a false upswing, followed by a V-shaped or U-shaped trajectory.
  • A K-shaped recovery, where some sectors and individuals experience a V, while others continue an elongated downswing.
  • An L-shaped depression, with no clear sense of the economy recovering any time soon.

The 8 Sectors To Watch When COVID-19 Restrictions Lift

That said, the return to everyday life will have a profound impact on the economy and stock prices. Savvy investors will watch the sectors most likely to recover quickly or that have taken the biggest hits during this unprecedented shutdown. Here are 8 sectors that you should pay close attention to after COVID-19 restrictions are lifted.

1. Advertising

When the economy shut down in March and April 2020, businesses felt the pinch. Many of those that survived did so by trimming advertising budgets substantially. This rolled uphill into the advertising industry, causing a drop in stocks for large advertising and marketing firms.

None of the publicly traded advertising players are likely to fail before things return to normal. Once they do return to normal, surviving businesses will ramp up their advertising spend quickly. They all know the first to hit the reopened market in a big way will enjoy years of advantage. Expect the advertising sector to expand rapidly alongside those big advertising spends.

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