Market Swings Don’t Matter: The COVID-19 Recovery Is Here
It’s a tale of two recoveries out there.
We all know that the COVID-19 pandemic has forever changed the economy.
Here in the U.S., thousands of businesses have shut down. And nearly 11 million Americans are still without the jobs they’ve lost.
Sure, businesses are reopening and employment numbers are slowly improving.
But not everyone is recovering equally. While some people can work from home and still make ends meet … others aren’t as fortunate.
The same holds true for businesses. Some have been able to bounce back. But others will keep their doors closed for good. The Wall Street Journal estimates that the pandemic has erased all economic gains from the past two years.
And when it comes to investing, knowing which industries are losing the most — and which are thriving — in these conditions can help you profit.
Which Companies to Avoid
You see, when the pandemic first hit, I knew there was only one way to still make money investing in the markets.
I had to find businesses that were pandemic-proof.
But after nearly 40 years on Wall Street as a trader and money manager, I knew solving that problem wasn’t so straightforward.
To find the businesses that would still thrive despite COVID-19, I first had to find the ones that would fail. And that was easy.
With lockdowns and stay-at-home orders keeping people from going out, any businesses needing foot traffic and daily transactions to survive would be hit hard. And ones that didn’t provide essential products to keep their recurring customers would be weeded out, too.
That made solving the problem very simple.
And it’s why I warned you months ago to not buy into businesses such as movie theaters, airlines, restaurants and retailers without an online presence. They would most definitely see their business evaporate — and they did. They’re feeling the strain even as the economy reopens.
But knowing which kinds of stocks to avoid so you don’t lose any of your retirement funds is only half of the picture…
And Which Ones to Buy Today
That’s why I also told you which kinds would thrive — and grow your nest egg in the long run.
In a world like this, people need technology to work and keep themselves entertained from home. They still need medicine and health care services. And when those needs combine, we see that consumers are willing to embrace it.
According to a Press Ganey survey released in December, patients rate their health care providers just as highly, or even more highly, when they have a telehealth visit. That means patients appreciate when the doctor is able to connect over video or phone instead of in person. And you can’t beat the convenience of speaking to a doctor without needing to sit in traffic or waste time in a waiting room.
The demand is there. And those are the kinds of businesses you want to invest in today.
Technology like this isn’t going away. It’s constantly transforming and improving the way we work, learn and interact. And before, during and after the pandemic, people will still need to go to the doctor.
When you put all of these trends together, you see what I call a “mega trend.”
Health care is moving more and more online. Doctors and patients are starting to insist on telehealth options for visits. Insurers and hospitals have been pushing payment options online for several years — a trend that’s accelerated with the pandemic. And advances in artificial intelligence are helping medical devices become more accurate and streamlined.
I call this mega trend the “Internet of Medical Things.” It’s the next step in the Internet of Things — connecting people and objects through the internet.
I just released a report that details where I expect this trend to go next, plus one company positioned to profit.
Editor, Alpha Investor Report