Several trends for investment portfolios post-Covid-19

MANY people are wondering what will the post-Covid-19 world look like. Although in the short term, the market is focused on current issues such as the reopening of economies, it is imperative for investors to position for the world after Covid-19. So what are the challenges and the opportunities?

Many companies' balance sheets, debt loads and earnings would also have deteriorated during the crisis, prompting them to try to cut discretionary spending for quite some time after the virus has been beaten, weighing on cyclical industries. Companies may also reduce share buybacks and dividends, which could be a headwind for equity market performance.

Corporations in the technology, healthcare and consumer space are well positioned to integrate its supply chain or buy up their competitors, essentially making them stronger after the Covid-19 crisis. Hence, in a post-pandemic world, investors need to gain exposure into these quality companies so as to grow and preserve their portfolios over the long term.