Scaling The New Landscape: Trading In The New Normal.

There’s no other way to put it other than that the Coronavirus is the worst disaster that 2020 has wrought upon the world. The death, the disruption, and the uncertainty of the near future are all things that are caused by the pandemic. The pandemic will never have a silver lining other than that which we create for ourselves, and that is exactly what the new normal brings.

Because of this pandemic, many sectors are forced to readjust and adapt. It is in response to the pandemic that we’ve seen a restructuring of the education system, with how we’ve discarded many traditional teaching methods in favor of newer methods that make use of technology. This is something we would not have done had we not been forced to do so. The same applies to the markets as well. There are many changes that we need to make, and the wisdom behind knowing these changes lies in the fact that those who are quicker to adapt to the new environment we find ourselves in are also going to be quicker to thrive in it.

So, what changes are bound to affect traders?

Stocks to Avoid

While recent events and travel restrictions have undoubtedly hurt the value of airline stocks, they do enjoy an extended recovery versus other stocks. This is based on how the stocks recovered after previous financial crises, and it is also for this reason that many traders still invest in airline stocks.

However, the truth is that for the average stock trader, everything beyond March is guesswork. In the spirit of mitigating risk, however, it’s best not to invest in airline stocks unless there is a massive restructuring in the industry.

The same also applies to stocks related to hospitality and travel but to a lesser degree since these industries are slowly recovering.

The retail sector is even more vulnerable because of the fact that they have been on the decline even before the onslaught of the COVID-19 pandemic. Add in the fact that many business operations have been suspended in an effort to prevent the spread of the virus, and you’ve got a sector that’s also suspended.

Stocks To Consider

As previously mentioned, the landscape of the field is shifting. Because of social distancing protocols, the need for digital transformation has been significantly accelerated. The fact that we also have a dire need for new medical technology also suggests that health technology stocks are going to enjoy an increase in value.

Food technology and behavior trends like remote working are also likely to influence the market.

Guesswork

 The truth here, though, is that anything beyond March is guesswork. This is why you shouldn’t put all your eggs in one basket, but rather, in the right baskets. The only true way to navigate the rough landscape we find ourselves in is through information, vigilance, and foresight. Luckily, because of the internet, there is an abundance of information. There are many tools and sites that hold valuable information for traders. WallStreetZen provides valuable research services for busy part-time investors, and it is a useful tool in determining which stocks to invest in.

Whichever the case, I think that we can all agree that it’s during times like this with a volatile market that we need to take extra care with our investment choices.

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