Passive Strategies To Benefit From Both Lockdown And Recovery

Passive Strategies To Benefit From Both Lockdown And Recovery

With too much uncertainties still lying around, we better play both the lockdown and a potential recovery. Article originally published at Master Investor Magazine June 2020 Issue 63.

But then Covid-19 came along, destroying nearly 60% of airlines’ market value in just a few months. While the S&P 500 is down 8.8% this year, the airline industry has been battered down by 58.0% and tops the list of the S&P worst-performer industries year-to-date. Airlines have been at the epicentre of the pandemic, as most governments around the world shut down air travel as a last resort to contain the spread of the virus.

Times have been tough for airlines, which already had some shaky balance sheets before the pandemic and are now looking for an opportunity to recover.

However the global economy is not going to fully reopen and then there are a few sectors and industries that may do better than anytime before.

Lockdown has benefited the rise of the video-games industry, as the games can be played anywhere, turning them into betting opportunities. But demand has not only arisen from having to stay at home. Youngsters are spending more and more time playing video games. The e-sports market is a niche within the video-games industry and one that the sports-betting industry won’t overlook. The threat of further pandemics and lockdowns will help boost the market.

You may read the full article, Passive Strategies To Benefit From Both Lockdown And Recovery, on the Master Investor Magazine, as usual. This month has been published as blog posts instead of its usual format.

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