In 20, 50, 100 years from now, historians will be writing books and articles talking about how the Covid-19 pandemic was a major turning point globally. While it is hard to say which direction the pandemic has turned the world, there is no doubt that it has changed the world. The same way World War II, the fall of the Soviet Union, the invention of the internet, the automobile, the Great Depression, the attacks on 9/11, the financial and housing crisis in 07-08 all changed the world in some way, this pandemic will do the same.
As an investor, this is very important to understand because it means that the way you should invest if you want to maximize returns and/or reduce risk could also change as you read this. You have to remember; we have been experiencing this pandemic for more than a year now, and most behavioral scientists will tell you that it takes about 6 months for habits to form fully. Whatever new habits people have picked up, or bad habits that were dropped during the past year, are probably here to stay.
For many, working from home is one of those “new” habits. It's going to be difficult for many Americans to work in a formal office setting 5 days a week in the future, since for more than 1 year now, they have been strictly working from home. The rise of at-home workouts provided by companies such as Pelton (PTON) has become a daily habit and shows signs that it is here to stay. More social media use more online shopping, fewer small retail stores that were shut down during the pandemic or just couldn’t survive and compete with the larger retail chains. People moving out of cities for more space or moving further south for warmer temperatures year-round. Continue reading "COVID Has Changed The World Forever"