The Tell: As the coronavirus pandemic forces a business paradigm shift, here are the stocks to watch in the new economy
Wall Street is seeing some green shoots on Tuesday, as the market wrestles with the likely new reality created by the coronavirus pandemic, which has brought many businesses across the globe to a screeching halt.
With that in mind, Bespoke Investment Group has assembled a list of equity investments that may be worth tracking as the era of COVID-19, the infectious disease that has claimed more than 17,000 lives and infected nearly 400,000 people globally, plays out in the coming weeks, months and possible years.
A number of sectors, including consumer discretionary
But the Bespoke crew says discerning investors may be able to identify opportunities that might emerge and, perhaps, even thrive in the aftermath of an economic recession that is expected to result from lockdown efforts put in place to mitigate the spread of the deadly pathogen.
“Yes, the virus will be here for many more months, but with testing, testing, testing and very successful treatments that are already saving lives,” wrote the Bespoke research team. The crew added “we can envision getting on with our daily lives again once we’re all confident that we know exactly what it is and how to deal with and defeat it.”
“All of this said, we’re not going back to the world we lived in prior to mid-February for a long time,” Bespoke writes.
Against the changing backdrop, the research firms says that open-air golf may prosper because the sport may be best suited to return to some semblance of normalcy after the outbreak subsides, making golf-equipment maker Callaway Golf Co.
Meanwhile, the market is still awaiting clarity on a fiscal stimulus package from Congress, intended to help fund efforts to help those afflicted by the virus as well as to provide assistance for workers, industries and businesses that are the hardest hit by shutdowns.
As of Tuesday afternoon, the Dow Jones Industrial Average
was gaining more than 5%. The Dow is off 32% from its Feb. 12 all-time closing high, while the S&P 500 is down 30% from its record peak, and the Nasdaq is off 26.4% from their Feb. 19 record peaks, with all three meeting the commonly accepted criteria for a bear market.
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