Here are the investment themes which I believe will play out in the remaining 2020 due to impact of Wuhan Corona Virus
Uncertainty
- The US-China trade war has already created uncertainty for markets over the last few years. If or when it will be resolved remains to be seen.
- Trade tensions between the US and Europe began to escalate last year. Whether this issue will be resolved or further escalated is still unclear.
- There are very mixed views on how robust global growth is, and there are question marks over China’s domestic economy.
- The US Presidential election will result in one of two very different outcomes.
Increasing Volatility in the 2nd half
- Equity Market Volatility s likely to increase during the second half of the year in the run up to the US election. The outcome of the election is unlikely to be clear any time before November. But the possible outcomes could have very different consequences for the US stock market.
- Several economists are already predicting a stock market crashor bear market if Donald Trump is defeated, and especially if a progressive Democrat candidate is elected. Besides US domestic issues, the outcome of the election could also have major consequences for geopolitical risks.
Innovation in the Health Care System
- Tele Health is set to emerge as a new area as Social Distancing becomes the new norm. This is not just limited to public but extends to health care workers also. Today people refrain from in person consulting and the trend will drive innovation.
- Pharmaceutical Delivery Compliances for online pharmacies are getting relaxed to let technology lead the pharmaceutical-delivery. But, the industry is being regularised with a new set of rules and regulations. Robotic Process Automation promises to overcome the challenges of increasing demand while complying with the regulations by automating high-volume repetitive tasks.
AI implementation
- The first area of AI implementation gathering momentum is customer support and chatbots. While these software programs have caused frustration in the past, they are now becoming “smarter” and are adding real value for companies
Digitalisation
- Ensuring business continuity is one of the highest priorities for every company, and in these days, many may be forced to cut costs. If they do so, however, they should not lose sight of the long- term implications of the crisis. Once the situation has been stabilized, companies must rethink their digitization strategy and put measures in place that establish sustainability for the future challenges to come.
5G and related technologies
One of the next tech themes will be the companies that stand to benefit from 5th generation cellular technology, or 5G. The other obvious companies that stand to benefit are the large wireless networks. The companies that will see improved bottom lines sooner, are those that supply equipment and components to the 5G industry.
De Globalisation
- As countries and companies try to become untangle supply chains only will see less dependents on lowest cost producers and more on sustainable delivery in case of another crisis. So more couples supply chains fr industries will emerge which will be more give more independence rather than interdependence.
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