In this phase, those who are active on the markets can "divide investments into four areas”, each of which corresponds to a trend or counter-trend confirmed or triggered by the coronavirus pandemic. The indication comes from Alessandro Fugnoli, strategist of the investment company Kairos, and is contained in the last article of the column "The Red and the Black".
1) TECHNOLOGY
In detail, the first area is that of tech, a sector that from the contagion "comes out confirmed and needs to be strengthened", writes Fugnoli, referring not only to the boom in pay-TV in times of quarantine, but also (and above all) to "expenditure for external defense and those for internal surveillance, today for health purposes and tomorrow who knows”.
2) CARS AND OIL
In the second area, Fugnoli inserts two "potentially and tactically positive" countertrends, ie the car e il Petroleum, "in which to maintain a very limited and speculative presence as long as the companies are financially strong". In particular, "cars could now experience a new season, thanks to the virus, as a health alternative to the very dangerous mass transport". As for oil, despite the recent historical collapse, according to Fugnoli, he will have some benefit from the virus, given that "for some time there will be less money to stimulate the green economy, which will be even more expensive when compared to low-priced oil".
3) GREEN ECONOMY
However, the third area Fugnoli talks about is precisely that of the "green economy stocks”, which are "to be maintained strategically" despite the slowdown imposed by Covid-19, because the fight against climate change, once the most acute phase of the pandemic has passed, "will be at the center of the new phase of reconstruction financed by public investments, above all in Europe".
4) THE LOSING TITLES
Finally, the fourth area is that of titles "losers, to be liquidated or to be considered later when natural selection has thinned them out and made them fall further in price - concludes Fugnoli - The moment, for those who want to sell, will eventually arrive at the end of May. There we will see if the gradual return to normality will have been premature”.
