One of the biggest fallouts of the COVID 19 pandemic is being felt in the world’s economic and financial systems. With more and more states reporting their quarter figures, one thing is certain- the world is experiencing its world financial situation ever since the Great Depression of 1929-1933.
With economies and markets crashing left, right and centre, millions of people are out of jobs and employment opportunities. The situation is expected to become much worse before it starts improving again. Investors have seen trillions of dollars being wiped out from stock exchanges and markets in different parts of the world.
In this article, we will look at the top five sectors, which have seen or are going to see the biggest losses from an investor standpoint. Please note that many experts to continue confidence-building measures state that in the long run, these stocks will bounce back. However, 90% of people do not have the appetite to stomach the volatility and keep on hoping against hope.
3 Investment Sectors, which have seen Major Losses for Investors: The List
1. Oil and Gas Stocks-
The global demand for oil and gas has plummeted to an all-time low. There is virtually no demand for oil and gas as billions of people are under lockdown in different parts of the world. The entire aviation sector is also under lockdown. This means that there is virtually no demand for aviation fuel now. With a barrel of crude oil nosediving below the ‘Zero Dollar’ price point, investors see no point in making any investments in oil and gas stocks anytime soon.
2. Property Stocks-
Even though the other stocks in the list are expected to bounce back sooner property and real estate stocks are not going to see any action any time soon. This is because the fundamentals of the economy crippling have meant that both commercial properties, as well as residential properties, are not going to find any takers. People do not have money or wealth options as of now to invest in real estate stocks.
3. Aviation Stocks-
If you would have been reading last week’s news, you would have noticed how Berkshire Hathaway has sold its entire stake in all four major American airline companies. Almost all the airline companies are experiencing an incomparable bloodbath unlike ever before. Millions of people working in the sector have lost their jobs and some companies are also making appeals to the governments to bail them out.
4. Automobile Sector Stocks-
With the lockdown being extended in most countries and curbs on vehicular movement, the auto sector is experiencing its worst levels ever. We also need to understand the effects of the oil and gas ecosystem on the auto sector. In addition, the auto parts component manufacturers are also reeling under no demand and no hope for the future. This sector too is requesting the government for benefits and tax breaks to tide over the crisis.
5. Financial Assets and Stocks-
Mutual Funds and other financial assets, including government bonds, are performing abysmally because of the Coronavirus pandemic. When it comes to financial assets, not another asset apart from Bitcoin is performing well enough. A majority of investors are pulling their investments from traditional financial assets and investing in Bitcoins and other cryptocurrencies.
Many seasoned, as well as amateur investors, believe that now is a great time to branch out and diversify their portfolios. This is why they are joining crypto exchanges and trading platforms to start trading in Bitcoins and other cryptocurrencies. Bitcoin has held its own during the pandemic and is expected to mature and stable out in the coming years. If you are looking to be the next bitcoin superstar, you should take up trading in cryptocurrencies.