Welcome to the 2-Track COVID-19 Economic Recovery
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, too. Some have been able to bounce back. But the 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 spending 37 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 like movie theaters, airlines, restaurants and retailers without an online presence. They would most definitely see their business evaporate — and they did.
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 they need to be able to buy products online. MarketWatch reports that ecommerce sales are up 42% as of August.
“Since March, consumers have spent an additional $107 billion online, with online spend totaling $497 billion,” the report said.
The demand is there. And those are the kinds of businesses and stocks you want to buy today.
Tech 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. Plus, e-commerce will continue to grow as consumer habits shift permanently toward the convenience of shopping online.
In Alpha Investor, we’ve been pandemic-proofing our portfolio for months. We will continue to bring you updates on technology and our favorite ways to profit.
Many of our stocks are surviving and thriving. And I’ll continue to find more Alpha stocks just like them to help my readers build your nest egg … and reclaim your financial future.
Editor, Alpha Investor Report