One Sector The Coronavirus Doesn’t Break
Last night, President Trump announced a 30-day travel ban from Europe — excluding the U.K.
And stated he would seek $50 billion to help small businesses affected by COVID-19.
Overall the markets did not react positively to this news. And it’s possible that when you checked your portfolio this morning, you were tempted to abort ship and sell everything.
While I cannot tell you what to sell and what not to sell…
I can tell you that this drop exposes some great opportunities in the technology and biotech sectors.
Innovation continues every day in the United States. And this happens regardless if there’s a travel ban for European citizens — U.S. citizens may come and go as they please if they get tested — or if the WHO labels COVID-19 an official pandemic.
Biotech Presents Opportunities
Fear will drive people to change their behaviors.
Yes, they’ll stock up on staples from their local supermarket or warehouse club to tide them over if there are quarantines.
On the other hand, people will also forego that cruise ship vacation or flight to Las Vegas or Orlando. Some industries, like travel, are seeing their shares hit hard. Fearful people are less likely to venture among crowds or spend their money on luxuries.
But one thing people will not willingly give up, no matter how bad things get, is lifesaving health care.
You may remember back in 2018 President Trump signed the Right to Try Act.
This allows people with deadly diseases to try experimental treatments — providing hope and saving lives.
Let’s say you have heart disease. Are you going to forego recently approved new therapies?
I sure wouldn’t.
Or maybe there’s a new therapy out there for leukemia patients that just hit its final group of trial patients. Do you think people will refuse to take new potentially lifesaving cancer therapies just because there’s a virus out there?
I don’t think so.
The biotech scene is wide open right now and is ripe with opportunity.
And while many biotech companies are following the course of the general market downward…
There are several out there that have been racing to develop a potential treatment for COVID-19.
And the cause is justified…
Rather than being isolated to certain parts of the world like Ebola…
COVID-19 shows global penetration to the farthest reaches of the world.
If one of these companies or institutions find a treatment, their product will be in hot demand.
I’ll track this story, as always, and send you the latest updates.
What I want to know right now is how has this outbreak affected you?
Kids home from college for the rest of the semester? Travel plans foiled?
Events like these affect people in different ways, and I’m interested to hear your story.
To a bright future,