There was some good news out of the May (2020) jobs report about how many new jobs were added despite the dismal outlooks during the previous two months. The good news is that confidence may be returning to the markets and investment opportunities looking good for consumers.
However, people are still leary about where they should put their investments. There are some stocks you could find to be great investments, but others may not be as good as the hype indicates.
Cannabis Stock In The Aftermath Of COVID-19
It’s becoming more and more likely that cannabis will be legalized in more states once all is said and done after the COVID-19 pandemic. Part of this reasoning is that in certain states, where it’s legal, local governments have deemed cannabis and CBD businesses essential.
Various industry experts have compared the current situation with the repeal of the Prohibition Act during the onslaught of the Great Depression, and how the government then recognized the tax benefits of alcohol when it was sold.
Experts expect to see something similar if cannabis becomes fully legalized, and it is a field in which more and more innovation in products is taking place. Cannabis stocks are still slowly working their way onto public exchanges and are deemed a bit risky, but this is something you should pay attention to in the coming years.
Video Tech Stocks Could Boom
Right now, there is a massive demand for reliable video streaming technology with people working from home and using telemedicine more frequently. While going back to work in the physical office may happen for many companies and their employees, there’s no doubt that some will see the cost-cutting benefits of remote work using collaboration and video streaming software.
Doctors have also turned to video streaming, especially for telemedicine, which has grown in appeal for patients who wish to visit without coming into contact with other COVID-19 positive patients. Expect remote work and video streaming technology stocks to continue the trend.
Be Careful Of Airbnb
You may have heard about the announcement of Airbnb finally going public, a big move which is expected to lead to high valuations for the stock. It certainly is a company that disrupted the hospitality industry and made a lot of profits in doing so, but today you may want to tamp down on the excitement before buying Airbnb stock.
According to the experts at Money Morning, “It may be a good investment eventually, but we suggest waiting two or three quarters for the potential volatility to settle. Then, if the financials look good, you can invest.”
This is not simply because the travel and hospitality industry has suffered during the pandemic. The travel industry will certainly bounce back, but other hotel providers and partners have seen the Airbnb business model work and have started adapting to it with their own similar services. Also, Airbnb has run into some legal red tape in a few cities and they haven’t yet figured out how to resolve these issues.
Consumer Staples Stocks Going Forward
Consumer staples stocks have been hot throughout the pandemic because they are part of the essential businesses category. Consumers tend to stock up on items like food, toilet paper, cleaning supplies, and of course, healthcare items like masks and gloves.
But going forward, the surge some companies have seen in sales will dissipate as COVID-19 does. Before you buy into the consumer staples arena, you may want to make sure you’re investing in companies with sustainable business models that enhance customer shopping experiences, like Costco and Amazon.
The market was at some very low points in the last few months, but with reopenings of the economy beginning, it’s already going back up, and time may be running out to find good deals on stock prices. But remember that good stock buying strategies don’t revolve only around which industries are growing, but on which companies are best poised to surge in those industries.