Best backdrop for value in a decade
The pandemic has dramatically accelerated the adoption of the technologies and business models – from video conferencing to remote medicine and home meal delivery – needed for companies and consumers to function amid a public health emergency.
In 2021, the key question for equity investors is whether mass vaccinations and a rapid decline in new COVID 19 cases could spur a rotation in market leadership toward cyclical sectors that are positioned to benefit from more normal economic conditions.
The pandemic fundamentally changed how consumers spent money and time and did it over an unprecedentedly short horizon. Spending on goods and services such as gym memberships, elective surgery, dental care, theme parks and restaurants fell by 50% to 80%. We have not seen anything like it since probably World War II.