The stock market has undergone a major pivotal point in 2020 and that was the COVID-19 pandemic. AS a result of the pandemic, we saw the massive movements in the stock market and how it has affected the trajectory of stocks, especially growth stocks. With vaccination programs being rolled out quickly all over the world, many countries are looking at the endemic state of COVID-19. As the vaccination rates all over the world are growing steadily, we must now consider the impact its has on companies and the stock market.
In this new series of posts, i will be giving my opinions on how it will affect different sectors of the economy and how you can tailor your investment portfolio differently.
Firstly, recovery and its impact on Retail and Consumption. Over the past year or two, we have seen a dramatic rise in the consumption of goods. Amongst popular online e commerce platforms such as $Amazon.com(AMZN)$$Alibaba(BABA)$and JD.com, we see an average of 28% increase in Gross Merchandise Sales from 2019 to 2020. This significant increase in consumption of goods was a direct result of the COVID-19 pandemic where many people directed their spending on services to goods.
Following the recovery and travel being normalised once again, i see this pent up demand significantly affecting the service industry. This will be a huge boost will result in greater stock prices and demand for companies such as $Airbnb, Inc.(ABNB)$ and even airlines companies. These recovery stocks can see a huge upside as the world returns to the state before the pandemic.
In conclusion, recovery stocks might be something to consider as the world recovers. Do continue to do you own due diligence before making any investment decisions.
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