Coronavirus: it’s time to wield investors’ secret weapon

July 5, 2021 | |Post a Comment

first_imgAnd that’s before factoring in the impact of recession – even if, as forecasters hope, the downturn is sharp, but short.The next two or three years, in short, are likely to be challenging.Investors’ secret weaponFrom an investment point of view, figuring out a response is tough. What has been startling is the pandemic’s impact on so many industries. A 34% quarter-on-quarter contraction in GDP for the three months ending 30 June? It’s incredible, but that’s the figure from the Office for Budget Responsibility.And even though it is currently forecasting a sharp recovery in the third quarter, just as startling is its estimate of a 13% year-on-year overall contraction in GDP for 2020. To put that in context, that’s far worse than the financial crisis of 2008-2009, or either world war – or, for that matter, the Spanish flu epidemic of 2018. See all posts by Malcolm Wheatley No, I’m not talking about cabernet sauvignon. I’m talking about diversification.Think differentlyPut simply, diversification is how we spread risk. Because right now, in my judgement, now is not the time for highly concentrated portfolios. Our 6 ‘Best Buys Now’ Shares It may seem trite to say so, but a sustained period of lockdown is likely to leave a lasting impression on both business behaviour and consumer behaviour.E-commerce, for instance, will have received quite a fillip – and Amazon won’t be the only beneficiary. Up to this point, my wife and I had never bought online groceries, although we’d dabbled with veg boxes and wine deliveries. But across the country, thousands of people – just like us – are discovering just how convenient home delivery can be. The public sector deficit? Let’s not even go there.5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…Pain pointsRight now, most investors are nursing heavy hits to their portfolios. As I write these words, the Footsie is down around 2,000 points from its mid-January levels. Meanwhile, gilt yields and interest rates are on the floor. Across a range of its savings accounts, banking giant HSBC is paying interest of just 0.01%.E-commerce is the futureAs I say, the futurologists are hard at work. And to be sure, post-coronavirus, the world will be a very different place. So it’s worth reminding ourselves of investment’s ‘secret weapon’ – the tool that we have available to us to help us through times of extreme uncertainty. It’s not without irony. Back in the 1950s, when I was growing up, home delivery was much more the norm, and supermarkets were the brave new world. Instead, it’s a time for broadly based portfolios – maybe stretching across different countries, but certainly stretching across different industries, different sectors of the economy, different companies, and different investment paradigms.‘Investment paradigms’? By that, I mean this: if you’re a growth investor, buy a few income shares. If you’re an income investor, leaven the portfolio with a few growth shares. I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner.But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. The forecasters and futurologists are already hard at work – even though most of us are still grappling with the grim reality of the present. No longer: round here, a local butcher delivers meat, but in a refrigerated van, not on a bicycle.Business-as-usual won’t be business as usualBusiness? Many businesses are shuttered, their employees furloughed. It seems reasonable to assume that not all will re-open. Some retailers have already called in the administrators. Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. Income investors – like me – are also seeing huge cuts to dividend income. Again, as I write these words, almost a third of each of the FTSE 100 and FTSE 250 constituents have announced a suspension or reduction in their dividend payments to shareholders. In short, it’s time to take a long hard look at what you own, and ask a question that’s all too-rarely asked. Not: ‘What do I own?’, but ‘What don’t I own?’ “This Stock Could Be Like Buying Amazon in 1997” Simply click below to discover how you can take advantage of this. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! Put another way, it’s no surprise to see cinemas, pubs and restaurants shuttered. But it has been surprising to see the extent of the impact on other industries: banking, insurance, utilities, manufacturing, commercial property, and defence, for example. Enter Your Email Address Across the country, huge numbers of people are discovering the realities of working from home. Video-conferencing has never been more popular. And again, it seems reasonable to assume that some businesses will permanently re-think their need for office space. Working from home won’t become the new normal, but smaller offices might. Coronavirus: it’s time to wield investors’ secret weapon Malcolm Wheatley | Monday, 20th April, 2020 Image source: Getty Images last_img

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