The pandemic era has forced most of us to analyze how we approach almost every routine in our lives. No area has been spared – from how we consume, participate in social situations, visit family and friends, even to how we work.
Changes in how we consume directly affect other areas, such as the supply chain, pricing, and – most importantly for shareholders and stock owners – how we invest our money.
The Long and Short of Things
Anyone who’s paid attention to the news for the last two years has almost certainly noticed the impact Covid has made on current stock market trends. Initially, a volatile and unpredictable market destroyed many businesses, taking many misfortunate investors’ portfolios with them.
However, as the world became accustomed to lockdowns and social distancing, clear leaders remained in the form of organizations that were able to adapt. Companies that could restructure their entire business plan and become efficient in operating and providing on a remote basis emerged victoriously.
While this allowed some to recoup and, in some cases, even thrive, an unpredictable global economy must still be approached with caution. But what about long-term investments?
Global catastrophes and historical events have a tendency to shape the way we approach spending and investing. The Covid pandemic has not altered this trend and, in some ways, has put an exclamation point on these shifts more than any other time in history.
Long-term investors must be acutely aware of these types of shifts or run the risk of losing their nest eggs and the portfolios they’ve worked so hard to construct. The most effective strategy is to put short-term market changes under the microscope and separate the pretenders from the contenders to make efficient predictions for the future.
Consider the following when pressing forward with your investment decisions.
When developing your strategy, pay attention to things that have changed with authority. Industries that have had their entire landscape completely transformed look to be the most solid picks for a long-term win:
- The medical industry has made huge changes to the way people receive healthcare. Betting big on things such as telehealth could prove to be a smart move.
- Organizations that allow bending for remote work (cybersecurity, sales, marketing, cloud-based, and etc.) should continue to gain momentum.
- Any company that allows online retail consumption with either direct or third-party delivery (online grocery, Wal-Mart, Amazon) will be safe for your long-term strategy.
While some companies made temporary changes that made them pretenders, others restructured their entire gameplan to hold on for the long haul. Learning how to discern between these two will be the difference between victory and defeat for your long-term portfolio.
The experienced lawyers here at Bell Shah Law are available when you have any type of legal business need. We will put our experience to work for you and ensure you and your employees are properly represented.