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In All Crises, There Exist Winners and Losers

chalkboard sign saying "crisis 2020" before an American flagWhile the COVID-19 virus brought the world to a grinding halt in early 2020, countries, companies and families around the world are finding their path back to “normalcy” day-by-day. As with all crises that come and go, whether it be war, economic depression, a real estate collapse, or in this case a global pandemic, certain people and businesses are going to fare better than others. As investors, we should look ahead and make our best attempt to determine where our money should be placed for the appropriate risk levels and provide opportunities for growth potential.

It’s heartbreaking to see small businesses shut down. It is especially tragic to think that some of these businesses may potentially be boarded up for good since small businesses have been the backbone of our country from its inception. Hopefully, we will see the end of this trend for small businesses. In the meantime, it appears this provides a windfall for larger, more well-capitalized companies, such as Walmart and Amazon.

COVID’s Effect on Businesses

woman dressed in winter clothes shrugging her arms with a surprised face at her computer

With less people traveling for work and for leisure purposes as well, there are winners and losers.  Airline stocks, cruise lines, hotel operators and so forth have lagged the general market due to less foot traffic and users of their servicesOn the other hand, online, technology-based meeting tools like Zoom have benefited greatly from this trend—it seems we’ve suddenly discovered how unnecessary face-to-face meetings are!   

Regarding real estate investments, single family homes and apartments may still have their place in an investment portfolio because people obviously need a place to live. It is retail office buildings and shopping malls that have had a tough go of it this year where the future of those investments seems quite uncertain. 

chalkboard background with "plan ahead" written in chalk where the 'd' in ahead is below the rest of the writingLooking into Your Investments

I’d encourage you to look at the investments you hold—gold, stocks, real estate, bonds—in an effort to determine 

the likelihood of their future success. Remember that your Financial Advisor can assist with this processThe world as we know it has already changed and will continue to change. Therefore, it’s as important now as ever to review your asset mix to make sure it’s appropriate for the years ahead. 

January 2020

Content in this material is for general information only and not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results.  

No strategy assures success or protects against loss. Investing involves risk including loss of principal.

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