Reopening of America

The reopening of America carries intriguing possibilities in the stock market.  As industries, education, and government restart their vast services, there will be some stocks poised to gain from this process.

Favorable investment opportunities could come from areas that were most punished during the pandemic or from companies that are best positioned to provide a remedy for the procedural demands which will accompany reopening.

Of all sectors in the market, the travel and leisure companies were the most dislocated from the pandemic. Consequently, these could have the biggest rebound during the reopening. Certainly, many of the hotel chains, airlines, and cruise lines will survive and regain higher price levels.

 

Simultaneous to the pandemic, the energy industry also endured an upheaval. Most likely, this stress has subsided and the shares of many of these companies can begin to climb.

Enhanced safety measures are a priority for reopening. Industries will lean on software and technology to satisfy standards and requirements. There will be a need for temperature testing and mobile infection tracking systems. Numerous companies provide these services and their stocks could respond to the increased demand.

Restaurants, public venues, and personal service companies will be required to use a lottery reservation system that operates efficiently. Several companies such as Booking Holdings, the old Priceline, are well-positioned to provide this solution.

Blending investments in these emerging themes with existing core holdings of companies providing essentials should provide safety, income, and capital gains, from our assets.

During the remaining weeks of this quarter, we are hopeful that client assets can turn positive for 2020, which seemed a remote possibility, at the heart of the pandemic.

Dan Botti
05/25/20

 


Peregrine Asset Advisers ● 9755 SW Barnes Rd. Suite 295 ● Portland Oregon 97225
503.459.4651 ● 800.278.1420 ● www.peregrineaa.com


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