It is not entirely correct to say that there are those who hit the jackpot in the history of the COVID-19 epidemic and related quarantine measures. There are certain sectors and individual companies that have suffered the least and are therefore more attractive to investors in the current situation. There are those who have been able to increase profits. Although in the long term, such a speculative interest in them at the moment can have a negative effect.
What stocks rose amid the coronavirus epidemic
First of all, we chose industries in which everything is intuitive and predictable:
- grocery retail;
- pharmaceuticals and biotechnology;
- IT companies (streaming services, telemedicine, telecommunications, etc.).
Let us consider the nuances of investing during the crisis using the example of the industry that is most of the attention today – healthcare and biotechnology.
Biotechnology sector bonuses
At the current difficult moment for society, pharmaceutical and biotechnological enterprises significantly benefit from the issue of trust and reputation, and earn pluses in karma. In the development of dozens of vaccines against coronavirus, some have reached the testing stage. Companies are testing various drugs that could help manage the disease. Expensive medical supplies in the amount of several million doses are distributed to hospitals free of charge. Companies are ditching beefed-up patents, allowing competitors to use their technological capabilities to develop a vaccine faster. Large pharmaceutical companies donate money directly to foundations.