William Huyler Assesses the Potential Long-Term Impacts of the COVID-19 Pandemic on Investments in 2021

The negative economic impact of COVID-19 is irrefutable. Economies and financial markets around the world have been significantly affected, many experiencing the largest declines seen in years. In addition, waves of the pandemic have resulted in sustained repercussions. Undoubtedly, the development and distribution of a vaccine will assist with slow recovery in some sectors. Regardless, the impacts of COVID-19 on world economies and investments can be expected to persist. Long-term optimism is warranted; however, investors must be willing to commit to a long-term strategy, as many financial advisors do not expect a full market recovery for at least a year or two.

As a personal financial advisor based out of West Chester, Pennsylvania, William Huyler has observed the economic impact and market disruption brought about by the COVID-19 pandemic. With an MBA in finance from Pennsylvania State University, William has an extensive background in assessing market trends. For years, he has offered top quality services as a financial advisor, helping his clients create a financial plan that makes the most sense for their financial situation and future goals. Today, he continues to provide sound financial advice to numerous clients throughout West Chester and Pennsylvania. He discusses the potential long-term impacts of COVID-19 and the implications for investing in 2021.

Long-Term COVID-19 Implications Require a Long-Term Investing Strategy

While some investors believe that the stock market and world economies will improve drastically in 2021, others are more hesitant. Many sectors will depend on the reliability and availability of new COVID-19 vaccines but even with that, it is likely that growth will be long-term. That being said, several sectors are expected to improve in 2021 and to continue to do so in the years to come. These sectors present several strong investment opportunities for those willing to invest long-term. In 2021, William Huyler recommends that investors focus their efforts on companies related to work-at-home activities, travel, entertainment, and e-commerce.

Work-at-Home

COVID-19 has accelerated the move to work-at-home arrangements for organizations of all types and sizes. While the introduction of a vaccine may see some employees returning to the office, work from home arrangements are expected to be a long-term effect of the pandemic. In terms of investing in 2021, this new trend suggests investors look at companies that provide products and services that support work-at-home activities. For instance, companies that provide productivity tools and other goods and services that enable remote work will likely benefit from this long-term implication. For those organizations that will resume in-office work, office sanitization and other health and safety measures will be important. This focus on cleanliness is also expected to persist as a result of COVID-19. Therefore, investment opportunities lie with organizations that offer sanitization and office management services. William Huyler recommends investing in these types of organizations, with a long-term strategy in mind.

Travel

The travel industry has been severely impacted by COVID-19. Airlines, hotels, and cruise lines have all seen dramatic declines in their stock prices since the onset of the pandemic. With the roll-out of a COVID-19 vaccine, it is expected that pent-up demand for travel will result in significant recovery in these areas. However, while these sectors are expected to recoup, improvement will be significantly impacted by the effectiveness and distribution of COVID-19 vaccines. Therefore, full recovery in this sector is not expected in the short-term. William Huyler notes that any investments in this area should be considered long-term, as recovery is not expected for years to come.

Entertainment

Many forms of entertainment, and live entertainment in particular, have also suffered as a result of the negative economic impact brought about by COVID-19. While the introduction of a vaccine will undoubtedly contribute to the return of live entertainment, many emerging technologies that assisted entertainment at-home during the pandemic are likely here to stay. Therefore, perusing investments in these areas may be beneficial in 2021. William Huyler recommends considering depleted stocks that are expected to recover with the re-introduction of live experiences, as well as companies that provide technology for at-home entertainment. For example, sporting event providers, concert organizers, and movie theatres, as well as the organizations that provide supplies to these entertainment companies, have the potential to experience spikes in their stocks once the vaccine is effectively distributed. Again, it is important to note that the strategy in this sector will also need to be a long-term one, as recovery will not be immediate and will depend considerably on the successful administration of a vaccine.

Consumer Behavior

As a result of so many people staying at home to work and socially due to COVID-19 restrictions, online shopping has seen expansive growth throughout 2020. In 2021, the number of brick and mortar locations are expected to continue to decline. This new trend, for organizations large and small, is a possible long-term outcome. Therefore, consumers can expect to see more and more companies moving their sales online. For investors, this means focusing on companies that have a strong online presence and seeking out organizations that have strong online sales and steering clear from those that put too much emphasis on their physical locations.

William Huyler on Investing in 2021

While the sectors to focus investments on in 2021 may have shifted, the general strategy for anyone considering an investment portfolio remains the same. The ability to recognize opportunities, especially in markets that have experienced the economic impact of the global pandemic, is essential for successful investment. However, above all, investors should focus on developing a diversified portfolio in order to manage their risk. In addition, adopting a diversified portfolio will allow investors to take advantage of the long-term trends and shifts in the market due to COVID-19. As a financial advisor, William Huyler suggests focusing on innovative companies that are willing to embrace change. COVID-19 has altered the way we live in many ways and the organizations that are facilitating and supporting these long-term changes will be the ones to succeed in the long run.

This article does not necessarily reflect the opinions of the editors or management of EconoTimes