Beyond the Virus: Refocusing on Essential Industries and Businesses

Beyond the Virus: Refocusing on Essential Industries and Businesses

Now the world now a very sharp understanding of what a Black Swan event is.

Yes, we are seeing a global health crisis, and those of us who are looking are seeing the coming restructuring of the global economic order.

The Key is how investors navigating to what is coming next.

The Big Q: What will the future look like?

The Big A: In this coming era we will witness a fundamental restructuring of the economic and social order in which business and society have here to for operated. Lives, businesses and living will be reshaped.

Returning businesses to operational health after this shutdown is challenging but will be done.

Most industries will need to think their supply chain. The weakest point in the chain will determine success and the return to rehiring, training, and attaining workforce productivity.

Leaders will reassess their entire business system and plan for contingent actions in order to return their business to effective production at pace and scale.

Opportunities to push tech and AI adoption will be accelerated by rapid learning about what it takes to drive productivity when well trained labor is scarce and/or unavailable.

The result will be a stronger sense of what makes business more resilient to shocks, more productive, and better able to deliver products to customers.

Business leaders must now contend with strengthening the system to withstand acute global shocks, such as this virus’ pandemic’s impact.

Investors will focus on businesses that will and will not benefit the shock now and those that may/will be ahead.

My colleagues and see the following initially benefiting from the recovery of this coronavirus shock, they are as follows:

  1. pharmaceutical manufacturers,                                       
  2. retail pharmaceutical,                                                  
  3. retail grocery,                                                         
  4. paper goods suppliers,                                                      
  5. online education,                                                              
  6. trucking,                                                                             
  7. quality fast food,                                                                                           
  8. internet and computer sciences,                                               
  9. web and video conferencing,                                             
  10. gold and other precious metals,                                                  
  11. healthcare and hospitals,                                                                               
  12. private schools and universities
  13. food supplements   
  14. commodities

And here is the list of industries that will take some time to come back to where they were prior to the coronavirus shock, they are as follows:

  1. airlines and cruise lines,
  2. hotels, 
  3. ski resorts and vacation spots,
  4. local transportation,
  5. gasoline stations,
  6. brick and mortar retail,
  7. non-essential services,                
  8. sit down restaurants,
  9. general manufacturing,
  10. mining, except precious metals
  11. public education
  12. import/export
  13. automobiles, especially EVs
  14. oil & nat gas exploration and production
  15. green energy

As we consider the scale of change that the coronavirus has brought forth and will continue in the weeks and months ahead we must realize that there comes from this crisis the imminent restructuring of the global economic order.

How this crisis resolves remains to be seen, what we do know is that it will resolve…

Have a healthy day, stay home!

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Paul Ebeling

Paul A. Ebeling, polymath, excels in diverse fields of knowledge. Pattern Recognition Analyst in Equities, Commodities and Foreign Exchange and author of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly regarded, weekly financial market letter, he is also a philosopher, issuing insights on a wide range of subjects to a following of over 250,000 cohorts. An international audience of opinion makers, business leaders, and global organizations recognizes Ebeling as an expert.

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