IG Group Holdings plc's (LON:IGG) institutional prime services arm IG Prime has released a new white paper predicting that the pharma and tech sectors are set to grow and keep on growing post-pandemic.
The report looks at the coronavirus crisis compared to the global financial crisis of 2008.
Of the 253 leading hedge fund managers and economic experts surveyed, 73 per cent stated that health and pharma will ‘increase in value’ over the next 12 months while 66 per cent held the same positive outlook for the technology sector.
Vaccine development
The obvious sectors that have experienced growth due to the pandemic are sectors in technology and remote working from home, but also the pharmaceutical industry.
Both Pfizer Limited (NSE:Pfizer) and AstraZeneca plc (LON:AZN) are raising hopes of a possible COVID-19 vaccine rollout early next year and, along with other companies working to produce lifesaving therapies, are experiencing growth.
IG Group Prime Brokerage Sales global head Max Hayden said: “The pharma industry in terms of growth opportunities will come in two parts, and this is what comes out of the survey.
“As you would expect with the development of a vaccine and related drugs around it, companies that are working on and will achieve that, obviously are ones to watch for the future.
“We can see those industries growing over the next months and years as well.”
Opportunities for investors
Technology has largely been responsible for aiding the economy from halting completely and softened the blow by assisting people to work from home.
As well as health data apps and coronavirus tracking systems, this is a sector where opportunity lies for investors.
Hayden said: “The question is how can certain lines or sectors like retail, adapt?
“They cannot rely on working from home.
“This will also spur how the recovery occurs too.”
Sectors set to grow
The following percentages indicate what hedge fund managers believe the likelihood of an increase in value over the next 12 months will be for the following sectors:
- Health and Pharma – 73%;
- Digital Technology – 66%;
- Airline/Travel – 50%;
- Financial Services – 46%;
- Retail – 40%;
- Real Estate – 38%;
- Automotive – 36%;
- Cryptocurrencies – 23%;
- Precious Metals – 18%;
- Indices – 17%;
- Oil – 15%; and
- Forex – 13%.
To download a copy of the whitepaper visit: https://www.ig.com/au/prime/hedge-fund-trends-20