June 18, 2024

Where To Invest During The Pandemic

COVID-19 has definitely changed the ways of doing business worldwide. With more and more companies not renting offices and moving everything to a home-based approach, there will be dozens and dozens of approaches within digital technology and, specifically, investment. Let’s analyse a couple.

The Data:

According to Bloomberg “Investors have abandoned European stocks, in part because the banks have suspended dividends and share buybacks during the pandemic at the request of regulators — yet many of the companies are likely to again pay dividends next year. That resumption, employee monitoring program along with a revival in buybacks, should reward shareholders for their patience.

European regulators are finally facilitating mergers between banks and encouraging them to become more profitable through consolidation. In September, two large Spanish banks announced they will combine to form the country’s largest lender.”. Therefore, if you’re in the US or in the UK (post Brexit), you might wanna consider those stocks.

Property And Real Estate

According to major investment journals: “Even though the recovery may be muted, it can still be broad — nearly all purchasing manager index surveys (which measures manufacturing activity) published around the world in recent months have risen. Typically, such a scenario would trigger a flow into cyclical stocks and out of defensive shares (which usually offer some protection even when the economy is struggling) at both the sector and regional levels as company profits improve.” This of course doesn’t apply to residential property auctions routes or commercial property auctions, given the fact that these are pretty much standalone and depending on external factors rather than stocks.

Invest In Startups

Pandemic The best companies to invest in share an extensive understanding of the market and strong metrics. Important metrics include annual recurring revenue (ARR), monthly recurring revenue (MRR), and total addressable market (TAM). A good way to make certain a company is generating a steady stream of ARR is by ensuring the product has a large and continuous demand in a big market. Ultimately, the bigger the market, the greater the likelihood of making a sale, and the more quickly the business can grow. Growth rates for companies, while they can vary between size, industry, and country, can help forecast revenues. Examples like AIRbnb, who’ve just hit IPO statuses could be an excellent option to being with.

To Conclude

Here’s the truth: If a deal isn’t favorable for both sides, it’s not really a good deal. It’s about creating a long-term business relationship that benefits both parties. You want the right person to lead the negotiation, someone with plenty of experience in deal leads. And, you want an experienced lawyer to assist in discussing and negotiating what will end up on the term sheet.