By C. Scott Garliss
THE COVID-19 PORTFOLIO: WHO PROFITS FROM OUR NEW PANDEMIC WORLD?
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Our lives have been changed dramatically by the COVID-19 pandemic...
Experts predict it will take another 12 to 18 months before a viable treatment will be ready for public use. Until then, "normal" is going to remain under stay- at-home orders.
Here in the U.S., most states have issued shelter-in-place proclamations. That means unless your business has been deemed “essential,” you’re supposed to avoid leaving your homes as much as humanly possible. As a result, some 90% of the population, or about 300 million American citizens, are on lockdown. To figure out what that means for us as investors, we need to look at what’s going on around us. What types of companies have done well in this type of situation in the past? We have a three-part investment thesis for you to consider today... 1. Much of the nation who still has a job is working from home. That means businesses need to become more efficient. They need ways to keep people connected and working in a timely, coordinated manner despite the
fact they’re remote. That way, workplaces can do everything in their power to keep people in their jobs and revenue coming in the door. 2. Everyone else – whether they still have a job or not – is avoiding one another. They’re also avoiding spending money. Everything from less money spent on your morning coffee at work, lunches out, and gasoline for the commute or a weekend getaway road trip. Not to mention, no one will be going out for a family dinner or to meet friends at a bar. All of that will be done from your house. In other words, we’re in a low-growth (if any) environment. 3. Finally, because of the anticipated economic shock, the Federal Reserve has cut interest rates to zero. The central bank has also launched multiple facilities to stabilize credit markets and ensure interest rates don’t rise.
American Consequences
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