Personal Finance

Updated on: Monday, December 20, 2021, 04:46 PM IST

Asset valuations remain firm as younger generation remains invested

Capital A's strategic involvement with RoaDo is a step towards its mission to invest in diversified and high potential sectors / Representational Image |

Capital A's strategic involvement with RoaDo is a step towards its mission to invest in diversified and high potential sectors / Representational Image |


During the last two years, the world has changed at a fast pace, mainly due to COVID-19 pandemic. First, we witnessed lockdowns all over the world and then there was a gradual easing of lockdowns. During the first three months, the assets like stocks, commodities and crypto-currencies dropped due to panic selling but later we witnessed a strong recovery. People were worried about the economic impact of COVID-19 on various sectors but soon it was evident that many sectors were gaining due to the pandemic.

Younger generation has access to many investment opportunities and they have a higher risk appetite. Popular investment apps like Robinhood, eToro, Interactive Investors and Binance have been embraced by youngsters across the world. In India, low cost brokerages like Zerodha, Geojit, SAMCO and ICICI have managed to gain subscriber base during the last few quarters. With stock markets rising to all-time highs, investor and trader interest in equities and commodities is also at an all-time high.

Technology, Online Services & Pharmaceutical Stocks Gain

Technology and pharmaceutical companies were among the major gainers during the pandemic. Technology companies have gained because there was a higher demand for devices, internet access, network equipment and online services. Pharmaceutical companies gained as people became health conscious and this led to higher consumption of medicines in general (not just immunity boosting medications).

During the pandemic, many companies have managed to save a lot in terms of costs as employees work remotely (or from home). Some of the technology companies including Apple, Microsoft, Facebook and Google have also indicated that some people from their staff may continue working from home in future as well. This will save a lot of money for companies in terms of providing office space and other employee expenses.

Companies like Facebook, Apple, Google, Amazon, Netflix, Tesla Motors, Zoom, Pfizer, Astrazeneca registered a strong growth in their valuations during the pandemic.

Online Casino, Gaming and Sports Betting Surge

During the pandemic as people were stranded at home, downloads for iGaming, online casino and sports betting apps registered a strong growth. Online casino platforms are offering casino games with immersive experience, wonderful graphics and fast response times. Games like Baccarat, Roulette, Teen Patti and Andar Bahar remain favorites on Indian betting platforms. Bettors can have a look at detailed reviews, strategies for playing roulette at and find brilliant tips for choosing the best online casino platform. While choosing the platform, it is important to have a look at the free bonus, withdrawal options and different casino games offered.

With sports betting platforms, bettors have options to place bets on sports events from the comfort of their home. As the world deals with COVID-19 and number of infections declined, sports events have started once again and people can enjoy the gaming action along with their betting options.

Crypto-currencies surge as an alternative investment

Youngsters believe in taking risks and they enjoy the volatility. Crypto-currencies cater to that requirement perfectly. Crypto-currencies claim to bring a revolution with blockchain, smart contracts, decentralized finance (DEFI), non-fungible tokens and many other new concepts. And, they are highly volatile. Youngsters believe in concepts like You Only Live Once (YOLO) and Hold On for Dear Life (HODL) and they are firm believers in some of the crypto-currencies like Bitcoin, Ethereum, Cardano, Solana and Ripple.

Finance Technology Apps

Many fintech companies have witnessed a strong growth during the last two years. In Europe, companies like Revolut and Wise (earlier known as TransferWise) have registered strong growth as they are able to offer forex services, money transfers at a much faster speed and lower commission compared to banks. Both these companies offer multiple-currency cards for their consumers and this concept has revolutionized the way people spend the money when they are abroad or shopping online. These cards can convert the money in any of the currencies at interbank forex rates (or with very low commission).

Real Estate Prices Jump

As the construction activity was impacted due to COVID-19 pandemic, the new developments reduced. This resulted in lower supply in the real estate market and the price for real estate has increased in all the major markets across the world. Real estate market experts believe that with easy access to low-cost bank loans, the prices for real estate could stay firm for the next few quarters.

Asset Prices Might Remain Firm in Near Future

It is not only that younger generation has higher a risk appetite, they also have better and easy access to information. Online forums, stock market advice columns and research reports are accessible either free or with nominal fees for investors these days. This helps them make informed decisions about any kind of asset they want to invest in. The choices are unlimited and with easy options for exit at any time, people are quick to take decision about where they should invest their money.

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Published on: Monday, December 20, 2021, 04:46 PM IST