As was the case with the collapse, so not all market players will walk at the same pace in the recovery: these are the sectors and actions that will not recover after the coronavirus pandemic crisis.
On the markets the recovery is starting to suffer. A recovery that will surely happen, but times and methods are still to be clarified. In this case, the analysts’ opinions are divided: according to some, we will only witness a series of small rebounds that do not determine the confirmation of having left the most dangerous area. For others, however, these are the first signs that something is changing.
As we have seen, in the midst of the coronavirus crisis some sectors have managed not only to hold up but even to outperform: this will be the case for the possible recovery. In other words, someone may not recover. We are not talking about those titles that have thrived with the coronavirus and then, with the end of the emergency, are destined to give way. An example could be some pharmaceuticals who, riding on expectations for a vaccine, after the emergency could see a drop in prices.
Instead, we are talking about sectors and stocks that will not recover after the coronavirus. In fact, the coronavirus can modify human behavior in a decisive and even long-term way.
Stocks and economic sectors that may not recover after the coronavirus crisis
We point out immediately that these are generic stock market forecasts disclosed by analysts and by large investors such as Warren Buffett, therefore they can be useful for orientation in investments. But as always, it is necessary to evaluate each market carefully and in detail.
In two or three years there may still be no volumes of the past in the air transport sector. This has given thought to many analysts who, looking behind them, have been able to identify sectors and stocks that will not recover after the coronavirus, including that of civil air transport. But even the automotive sector could struggle to recover after the crisis because people will work more from home with smartworking and therefore will move less. On the contrary, the soft mobility sector, including car sharing, could also benefit.
Even worse forecasts for cinema. Meanwhile, from Needham, they recommend buying it with a target increased to $ 50 from the previous $ 40. Competition from Netflix (NASDAQ: NFLX) and more generally from streaming has been very strong. In this case AMC, the largest cinema chain in the world, already overburdened with debt, could be affected.
With the restraining measures remaining for some time, many have decided to train at home. They have therefore equipped themselves so as to be able to create micro gyms in their own apartment. This may create an unexpected consequence, that is that even when returning to sports centers, some of the users will prefer to continue training at home. This is because, now accustomed, you will find it more comfortable.
Peleton, an Indian start-up specializing in yoga, could only find a way to recover after a series of layoffs. Your competitive advantage now? A new industrial strategy. In fact, the top management may decide to move online.