Skip to main content

Where to Invest After the Crisis: Meet the 'Futurists' Who Forecast What Happens Next - Where Does That Mean You Should Invest?

As we emerge tentatively from lockdown, it is difficult to know what the future will look like and which businesses will thrive. So who better to ask than futurists, the experts who make it their business to try to find out?

While their exotic job title may conjure up images of tarot cards and crystal balls, their skills in divining profitable market trends and opportunities mean their views are keenly sought by major firms.

We asked expert futurists to gaze into a post-coronavirus future and suggest how our lives will change due to the pandemic – and how we can invest in the companies that will benefit from a new way of living.

CLEANLINESS AT ALL COSTS:

Hygiene will be a preoccupation for a long time to come, even if a vaccine is found for Covid-19. Faith Popcorn is a futurist and founder of marketing consulting firm Brain Reserve. She says that after the current focus on deep cleaning in hospitals and care homes, it will be considered necessary in other spaces as well, including at hotels, public arenas and restaurants.

She says: 'We'll want little robots – like Roombas, robotic vacuums – zipping around with UV light and heavy-duty cleaning formulas. We'll also want IoT (Internet of Things) sensors to monitor the safety and purity of locations. As a result, apps to track infection and fevers will be vital.'

Companies such as Byotrol and Tristel, both listed on the junior AIM market, are among those likely to benefit from this emphasis on cleanliness. Both produce high-tech disinfectant and have seen demand soar in hospitals. As users begin to expect similar cleanliness in social spaces, the two companies will have a new customer pool.

Shares in both firms can be bought via major online wealth platforms such as AJ Bell and Interactive Investor. They are among the companies held by Venture Capital Trusts managed by the likes of Amati and Unicorn.

A MINI HOUSING BOOM ...AND A DELUGE OF DIY:

According to futurist William Higham, of consultancy Bright Young Things, many households will come out of lockdown either looking to move or improve their existing homes.

He says: 'Lots of people will have decided that they don't like where they live – so there will be movement in the short term.

'But with many working from home for the foreseeable future, a lot of people will want to improve their home working environment.'

The result, Higham says, will be a boom in loft conversions and garden offices and other structural and decorative improvements to make homes easier to work from.

Garden centres and DIY stores – now they can open again – are likely to do well from pent-up demand.

Companies expected to do well from this focus on the home include out-of-town furnishings stores group Dunelm, which has already put contactless delivery and click-and-collect in place.

Also, kitchen group Howden Joinery – a constituent of the FTSE 250 Index – and builders' merchant Travis Perkins.

Investment funds that give access to these stocks include Aberdeen Standard Investments UK Ethical that has stakes in Howden and homebuilder Bellway.

The fund has generated returns of 7.7 per cent over the past five years, but has recorded losses of 17 per cent over the last year.

The fund's biggest holding is ventilation and underfloor heating expert Polypipe.

Georgina Brittain is manager of investment trust JP Morgan Mid Cap that holds Dunelm. She says Dunelm is 'well placed to continue to taking market share from competitors who are struggling to compete on product, technology, or marketing spend.'

She adds: 'Dunelm's management was one of the first to take a voluntary pay cut at this difficult time which, we believe, shows signs of true leadership.'

The trust, which has recorded losses of 25 per cent over the past year, has Games Workshop as its main holding – another company well placed to deal with lockdown, providing at-home games experiences for teenagers and adults.

A NEW GOLDEN ERA FOR TECHNOLOGY:

With many now accustomed to working at home, a post-Covid-19 world is unlikely to see a rush back to the office.

Instead, offices are likely to be smaller and used for meetings rather than for day-to-day work – with technology taking the strain instead.

David Shrier, the author of a new book on artificial intelligence and the future of work, says: 'The pandemic has accelerated the trends we were already seeing, with more automation.'

He says that although many have so-called 'Zoom burnout', 'we won't want to rush back into commuting into the office and will rely on technology far more'.

Darius McDermott, managing director of investment fund scrutineer Chelsea Financial Services, agrees that technology – and technology-focused businesses – will continue to thrive.

He says: 'Companies have had their eyes opened to the need to have good technology that works well and is flexible. Over the past decade or so, reinvestment in companies has been low and we'd expect more upgrades in the short term. Remote working technology may fall off a little but long term we think it will endure. Companies have seen that meetings are possible without jumping on a plane, and that working from home has proven to work effectively.'

Teodor Dilov is fund analyst at wealth manager Interactive Investor. He says some of the UK's biggest technology stocks are also experts in cyber security which will also be big in a post-Covid-19 era. He adds: 'Companies probably know more about our consumption habits than our closest friends.

'No wonder cyber security is big business. Some of Britain's biggest and best known investment funds and trusts have dipped their toe in this sector.'

One example is F&C Investment Trust. It counts Microsoft in its top ten holdings – a business with many counter cyber crime offerings: from cloud-based Azure, Office 365 through to Windows Defender. Microsoft is also a top holding in Fundsmith Equity.

Shopping and fine dining... in a virtual world :

Leisure companies have been particularly hard hit by lockdown, with public spaces shut and customers no longer allowed to enjoy restaurants, cinemas and other leisure activities.

William Higham, at consultancy Bright Young Things, says there is pent-up demand for 'connection', and people can't wait to socialise again and enjoy leisure time.

Equally, we will be nervous about crowded spaces, making it hard for leisure-related businesses to make a profit.

When we do venture out, says Higham, our dining experience will be very different. He says: 'Restaurants will have lower capacity, more outdoor seating.'

On the Continent restaurants have already started to include more outdoor seating and plastic bubble areas for dining.

In Amsterdam diners have been seated inside small greenhouses in outside spaces. This will be difficult for many restaurants and we've already seen Casual Dining Group, owner of Bella Italia, plan to bring in the administrators.

Faith Popcorn, of Brain Reserve, says many people will prefer to socialise online for the foreseeable future – and that companies able to meet this demand will thrive.

So, for example, online restaurant experiences will be part of a virtual reality boom where we travel, meet friends and play games in a virtual world.

She adds: 'Companies such as Aerobanquets are pioneering virtual reality meals where you watch amazing, artistic landscapes as you eat.'

Microsoft and Alphabet (Google's parent company) are the big companies involved in virtual reality, while Chinese giant Alibaba has an online virtual reality shopping experience which might scratch the social shopping itch while the malls are closed. Investment trust Schroder AsiaPacific has a large holding in Alibaba while Polar Capital Technology has stakes in both Microsoft and Apple.

The Schroder fund has incurred losses of just 1.9 per cent over the past year, but has recorded gains of nearly 58 per cent over five years.

Polar Capital Technology has generated returns of 31.5 per cent over the past 12 months.

** If you’re living from paycheck to paycheck, you’re in the most danger if things go wrong and companies start cutting jobs or worst laid-off permanently. Click here for a Plan B that can even make you rich.

Free Stock Trading Strategy Presentation by Micro Cap Millionaires. Click here for details!

Article resource:
https://www.thisismoney.co.uk/money/investing/article-8350859/Wholl-clean-Covid-crisis-ask-experts.html

Comments

Popular posts from this blog

2 Tier Affiliate Programs Explained

How will refering new affiliates to an affiliate program make me money in the future? Thats where a 2 tier affiliate program works like magic!  Affiliates are getting cleverer by the day. So these days, affiliates know the difference between the different types of traffic they can get paid for. There are a lot of definitions though – CPM, CPC, CPA, CPL, CPD and many more.  CPM is impressions, when the publisher (the website owner) gets paid every time a banner is shown.  CPC is clicks, where the publisher (or email marketer and other marketers) gets paid every time a banner or text link is clicked upon.  The other ways of getting paid are grouped together under the term performance marketing – and this is where the term affiliate is most commonly used as well.  An affiliate is a marketer who sends visitors to another site using a variety of methods (such as placing banners or text links on their own site, buying sponsored listings on search engines, email marketing and many

10 Ways to Make Money with Bitcoin [2020]

Bitcoin is the best performing asset class of the last decade but it is misunderstood making lots of people susceptible to scams. Find out how people are really making money with bitcoin. Bitcoin is just over 10 years old now and it has taken the world by storm. It has created many overnight millionaires through its various bull runs, the highest value reached at the end of 2017 when it peaked just under $20,000. Due to its complex nature and high profits, it attracts all sorts of people, some who take advantage of other people’s lack of knowledge. Many people have fallen prey to bitcoin scams and ponzi schemes. Therefore, it is important to know what bitcoin is and how you can actually make money from bitcoin. What is bitcoin? Bitcoin is a cryptocurrency and worldwide payment system. It is the first decentralized digital currency, as the system works without a central bank or single administrator. The network is peer-to-peer and transactions take place between users directly, without

8 Evergreen Tips to Create a Blog That Generates Passive Income?

Anyone with a blog can make money online. If you have a blog and you want it to generate some extra income for your home, I’m going to give you some tips in this post.   I understand some people are blogging full time. That means their blogging activities generate enough income to keep them going. Maybe you are wondering if that’s possible. Yes it is. I have been blogging full time for over 5 years now. Blogging is a lucrative income-generating business and many are beginning to get into it actively. But you do not need to be actively involved to make something reasonable from your blog. It can actually be an awesome source of passive income if you’re following simple steps that work. How to make passive income from your blog One of the most beautiful things about blogging is that you can blog just about anything. If you are a professional in any industry, all you need is basic knowledge to setup your blog and start writing about the things you already do: Are you a lawyer, pilot, nurs