2020 has been a difficult year for investors due to the mass number of unpredictable outcomes for the future of the UK and world economy. Many businesses both large and small are finding it hard to adapt to the new virus measures. As a result, both investors and businesses are confused about their future. Growth in every sector excluding some like technology and healthcare has slowed down.
However, past times of economic stress such as recessions have given us good opportunity to invest in companies before huge growth. Technology companies founded after the 2008 recession that have stood the test of time include Uber, WhatsApp and Instagram.
In addition to this, technology companies such as Apple and Amazon still saw growth after the 2008 recession. Both tech firms have seen growth in share value over the coronavirus period, and this shows how investing in tech giants like Apple can still be worth it. By finding and investing in a tech stock whose products see mass adoption, we can see a massive gain in our portfolio regardless of the economy.
A safe investment during tough times
Tech stock Halma (LSE: HLMA) is a company based in the UK making technology solutions in many different fields, including water analysis, environmental monitoring, health assessments, and others. Halma has had a strong financial performance in the last year, with important measures such as profit and assets increasing. In addition to this, settling liabilities with their debt decreasing. Projects in many different fields have given Halma a strong stance in terms of its financial performance. This shows how safe an investment in Halma is due to its strong standing.
All of this has been positive for Halma shareholders who have seen healthy growth in their shares. From March 21st, the firm outperformed the FTSE 350 index. New investors may be concerned about future growth since, with a high P/E ratio, growth seems questionable. This doesn’t mean growth of the firm is going to slow down, thoughm as Halma is well diversified with projects.
Don’t miss the opportunity for returns
Many ideas around how the coronavirus will affect the future of the economy have been flying about, with many people having differing opinions. But one thing that’s for certain is that there is a race to stop the virus.
Growth of the healthcare sector seems certain as long as this virus has an effect on the world. Therefore, companies creating solutions for the problems that the virus brings should see mass adoption in their products and services.
Halma is heavily involved in the healthcare sector. Investments made by Halma such as Bio-Chem Fluidics help cut costs in the medical sector through making medical tools more efficient. Other projects invested in by Halma in the medical sector include precision fluid transfer by Longer Pump and many others.
This heavy investment in the medical and technology sectors is wise during times where progress in it is so vital. This suggests to me how, as a tech stock, Halma is safe and profitable to invest in. Biotech and healthcare are important for our future while this pandemic has a hold over the world, and Halma is on the frontline of the problem.