How the Crisis Could Solidify Long-Term Investment Themes

Portfolio Manager Jeremiah Buckley explains why he believes behavioral changes precipitated by the pandemic could help certain sectors and companies – particularly those with ample liquidity and sound balance sheets – emerge from the crisis in a position of relative strength.

Key Takeaways

  • As companies adjust to the current environment, those with stronger balance sheets and ample liquidity may be able to invest now to emerge in a position of strength relative to their competition once we emerge from this crisis.
  • While specific sectors and industries like travel and hospitality have been particularly hard hit, certain behavioral changes taking place during the pandemic could solidify long-term investment themes such as Software as a Service, mobile payments and health care innovation.
  • As the pandemic has circulated globally, progress made in other countries may inform the eventual path of recovery in the U.S., including which companies and industries are seeing a recovery and which are not, as well as how consumers are reacting to the new normal.