Post-corona trends and their role in immunizing your investment portfolio: Part II
By Svetlana Borovkova, Head of Quantitative Modelling
In my previous column, I have outlined three emerging trends that, for a large part, will characterize post-corona world, i.e., the way the society and economy will operate after the coronavirus epidemic.
These trends are:
- Social transformation (cautiousness in travel, increased interest in staying and buying local, new ideas about public space, preference for car and bike use over public transport, attention to hygiene and healthcare)
- Accelerated digitalization (Digitalization of work and services, remote working, less business-oriented travel, broader acceptance of online solutions and increased importance of IT security)
- Sustainable innovation (emphasis on sustainable transformation, de-globalization, shift towards circular economy and increased demand for sustainable products)
These trends will have significant consequences for investment portfolios, as some companies are better positioned to be resistant to (or even benefit from) these trends, while others will have harder time coping with the “new world” and hence, generating value for their shareholders.