Poll: Race to Reset
“Which of these sectors is poised for the fastest turnaround after Covid-19?”
- 40%: Tech and media
- 31%: Travel and leisure
- 20%: Retail
- 9%: Financials
Time is money! We asked the Invstr community to put us on a fast track to post-corona financial freedom, and you guys sure delivered!
If this pandemic changes the way people live and their interest in going out as spending power returns, brands like Nike might get back to all-time highs later than online ad giants like Google and Facebook. The public might wait before tip-toeing back outside.
Perhaps that’s why more than a third of our community think the market will pick up where it left off in February, with Big Tech leading the way. The likes of Amazon could resume business as usual even if consumers still don’t, as long as they have the green light to reopen fulfilment centres and to take employees off furlough.
With that said, however, it makes sense for retailers to print gains. There’s a double or more waiting for brick-and-mortar survivors if their stocks ever make it out lowest of their lows. The challenge is in picking the survivors. Retailers are getting flushed!
If tourists are given free roam in time for the summer holidays, big stock market strides could surface more quickly for travel and leisure picks. Think cruise lines, airlines and hotels, all on the watch list for 31% of the Invstr community. The same rules apply about finding said cruise line with long-term survival prospects. This virus could sink a company in months; a second wave would capsize it for good.
Banks are the bear’s bet. It might be because financial institutions have weathered this storm fairly well so far with strong fundamentals and essential services. They don’t have far to climb back to their previous highs, many already have. The banks make for a less risky investment this time around, in stark contrast to our last crisis!