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MKM partners prepared a list of stocks that may have the greatest chance of doing well during the times of the coronavirus. The list includes AAPL, FB, NFLX and others.
Some all-weather stocks could lift investment portfolios even amid coronavirus. This comes at a time when markets are plunging. While this isn’t investment advice, these stocks could help mitigate the risk associated with sideways markets. Here’s the kicker: most of them have something to do with serving home-based services. This group of stocks seems to be above the investor’s fears at the moment.
Sources have revealed that prominent equity research firm MKM Partners LLC indicated that some stocks fit the bill. This came from a recent investment note. The stocks identified have staying power. They are also identified as stocks that will go up despite the general market apathy.
Among them, Facebook Inc (NASDAQ: FB), Netflix Inc (NASDAQ: NFLX), Amazon.com Inc (NASDAQ: AMZN), Zoom Video Communications Inc (NASDAQ: ZM), Peloton Interactive Inc (NASDAQ: PTON) have been identified as stocks in this cadre. JC O’ Hara who is a part of the management of MKM Partners indicated in a note:
“We tried to identify what products/services/companies would potentially benefit in a world of quarantined individuals. What would people do if stuck inside all day?”
Some All-Weather Stocks Beating the Markets even during Coronavirus Panic
Investors it seems are already following this pattern. Netflix has risen yesterday by about 2%. The S&P 500 was down at the same time by about 2%. Peloton was up by about 14% earlier in the week. The exercise bike company has been surprisingly resilient The S&P 500 at that period had fallen by about 9%. Virtual conferencing company Zoom’s stock has moved up by about 5%. This may be because virtual meetings are now in fashion.
COVID-19 fears have driven global markets south for most of the past week. Global markets are expected to remain this way. US markets are expected to lead the pack. This follows confirmation of the first COVID-19 case in North Carolina. The case is reported to be of unknown origin. Fears of the virus being spread on a communal basis have arisen. This will further affect markets globally. The United States is the undisputed leader of financial and commodity markets by far.
Two sets of companies have been identified to be among those that have been the worst hit. Those having anything to do with travel are the first on this list. From hotels to airlines, stocks have been tumbling across the board. Those that have Chinese supply chains are also dropping in value as well. Technology giant Apple Inc (NASDAQ: AAPL) comes to mind.
The list prepared by MKM partners includes those stocks that may have the greatest chance of doing well during these times. As for their long-term chances of doing well, the individual circumstances surrounding the stocks and their industries would have to be considered. For now, though, these stocks seem to be “immune” to COVID-19. Time will tell if they will remain so.