How to invest in the post-pandemic era

Introduction : The UNCTAD report shows that due to the new crown epidemic , the scale of global direct investment will drop significantly in 2020-2021 . The sudden outbreak of the new crown epidemiced has affected the overseas investment activities of global companies to a greater extent . Cross-border investors should always remain cautious about the changes brought about by the new crown epidemic .

As the new crown epidemic is rapidly raging at the world and causing serious health incidents , all countries have adopted strict epidemic control measures . Globally , investors and invested companies in various countries are affected by the new crown epidemic , and the control measures in various countries have actually restricted the flow of capital and personnel , which has a direct impact on all aspects of cross-border investment and will have a continuous impact .

Therefore , the impact on the new crown epidemiced is likely to persist with a long time after the epidemic is completely over . Therefore , in this severe era , choosing a good investment project is the top priority .

In the short term, due to the extensive liquidity of the epidemic last year, we have seen the birth of the Sci-tech Innovation Board and some institutional innovations and changes in the capital market. This is very friendly to the capital market and asset management institutions. Especially in the fields of new energy and medical treatment. It will take time to digest the high valuation. This year is generally a volatile market, with structural opportunities.

In the long run, both the energy structure and the demographic structure will have great changes, so many investors are preparing to get in touch with these emerging industries. However, from the perspective of the life cycle of the industry, most of these emerging industries are not sustainable, because almost all growth industries will eventually become normal industries, and all high valuations will eventually become low valuations. This is the fate of all companies. The market has given relatively high expectations, but if the enthusiasm drops in the future, it may not be able to achieve better returns.

Then many investors will ask , in the current post-epidemic era , which industries are better ? Here , my answer is : the food industry . Because food is the foundation of people’s livelihood . For the country , grain reserves are a preventive governance method . Sufficient food reserves are a solid guarantee of a country in special times such as various disasters and wars . The same is true of investors . Moreover , the potential for the African food industry is huge , and investing in this industry is even more a wise decision .

After determining the investment industry , choosing a trading partner should be more cautious . Due to some restrictions brought about by the epidemic , it has become more difficult for investors to have an in-depth and thorough understanding of trading partners , counterparties , and advisory teams . In particular , there may be a lack of face-to-face communication . Therefore , when choosing to trade partners and advisory teams Should be more cautious .

Just like our company “Hongdefa Machinery” has been in the African market for decades, before the outbreak of the epidemic, we would visit our customers in Africa every year and would also help our customers who have sold the equipment to maintain their equipment for free. We also have our own overseas offices in Africa, Zambia, Uganda, and Ethiopia, which is undoubtedly one of our huge advantages.

Although the sluggish market trading environment and various uncertainties have been brought about by the epidemic, we have not been greatly affected. When the epidemic began to isolate at home, our leaders made the right decision. We began to implement online meetings to communicate with our customers, and our technicians and managers were on the opposite side of the camera to answer customer questions. Facts have proved that our decision is correct. In this era, we still win the hearts of many customers with our excellent quality.

Customers and our video conference
Customers and our video conference

Since the beginning of 2020 until now, all the customers who have invested in the milling plant have given us positive feedback. You read it right, it’s all! This also suffices to prove that the grain industry is very stable and will not have the same ups and downs as some other industries.

I think valuation is the result of market transactions, and it reflects the different expectations of the market for the future. The market is completely uncertain, but one thing is that the food industry is very important and important at all times. We at Hongdefa and our customers have had a difficult two years, and we cannot predict when the epidemic will completely end. Therefore, we suggest that you invest in a mill of your own, so that you will have confidence in your heart no matter when.

Finally, welcome to call us, trust me, this will be one of the most correct decisions you have ever made.

Hongdefa team