Mid-2020 and expectations
The year 2020 began with a slight drowsiness.
No one knew or thought we were facing a storm devouring everyone’s cards. It started in February and continues to this day when looking ahead the solution will probably be at the end of the year or the first half of 2021.
The corona virus has toppled the markets by tens of percent and government measures along with central banks, and the US in particular, have managed to stop the financial collapse and turn the markets from very negative to very positive and all in a span of 3 months.
US President Doland Trump has explicitly said “Do whatever it takes” to support economic stabilization and full support for economic activity.
Short term is very deceptive. For those who are trying to schedule – he should prepare for failures and losses. On the other hand, in the long and even medium term, an investment environment can be created with a much more convenient and clear chance / risk equation design.
Estimates are that interest rates will remain low and therefore stocks will remain the alternative for investors.
In questions of where to invest the corona crisis gives excellent and accurate answers – American technology.
It makes perfect sense to be exposed to investments in technological fields and to technology companies that make it possible to lead a life even in the shadow of and after an epidemic.
A significant part of the interpersonal, business and state communication is based on the Internet, which is why technology companies recognize this and work to improve and expand their businesses.
An expanding and growing business is a more lucrative business and hence more equal and hence its shares will show positive returns.
Running towards the development of a vaccine or cure for the corona virus is of course also helping the medical sector of all kinds. Whether in companies that work to find a vaccine or medicine, companies that operate in medical equipment and more.
A starting point for an end to a crisis, even if it takes time, will also bring other sectors to a bottom point from which positive returns can be seen
The first sector to benefit from the crisis and significant improvement in the economy is the banking and finance sector – banks, insurance companies and investment companies.
You should pay attention .. I constantly write (and also tell those who are willing to listen) Do not try to time the market or the sector in the short term
In order to generate a return and generate value – strategy is needed and patience and a lot of patience is needed. The medium and especially long time does wonders for the investment portfolio.
And remember – no one walks down the street with a speaker and announces that the crisis is over.
There is no recommendation or advice to buy or sell securities.