Investors seek out key opportunities from the hit of coronavirus

As global stock markets rallied on Tuesday this week, investors are looking to ‘new world’ sectors and businesses as the world adapts to life with coronavirus and looks towards an economic recovery.

Over time we’ve seen every economic downturn generate a new normal, and the one being sparked by the COVID-19 pandemic will be no different.

The impact of the coronavirus spread has reached companies across the globe, causing vast international disruption, with numerous sectors reporting considerable issues in regard to supply, demand or indeed both.

Nevertheless, there are still certain sections of the economy which are benefitting from the fallout of the coronavirus pandemic.

As such, savvy investors are now actively seeking out these ‘new world’ sectors and businesses so as to accumulate and safeguard their wealth.

This is shown by the Nasdaq Composite Index – technology heavy – performing well where other global indices have weakened.

As new industries come into their own, there will of course be winners and losers. This will result in job losses in certain sectors and massive employment and investment opportunities in others.

As I said last week, a coronavirus recession will likely profoundly alter how we live, invest and do business. In addition, it could accelerate the Fourth Revolution, driven by new technologies including mobile supercomputing and Artificial Intelligence.

Indeed, big tech is just one likely winner. Tech giants such as Apple, Facebook, Amazon and Alphabet – Google’s parent company – have massive reserves of cash to continue, perhaps even strengthen, research and development and maintain their business operations.

Furthermore, this sector will also likely face increased demand as quarantine, isolation and social distancing impact its current and potential consumer numbers.

The recent increased regulatory restrictions and political opposition to their growth and heightened influence is likely to be reduced substantially.

For this reason, and others, additional sectors besides the Silicon Valley giants will potentially still offer positives for investors.

These include supermarkets, healthcare and pharmaceutical companies, delivery brands and electronic goods manufacturers.

Naturally, there will be a recovery from the global economic hit of the COVID-19 pandemic. However, the world has already changed as a result, and will continue to do so. Therefore, shrewd investors know about this new normal and are already revising and reviewing their portfolios.

History has taught us that times of considerable volatility can be times of immense promise and opportunity.

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