Coronavirus Investing: An Overview for Investors

The economic pressures from the coronavirus outbreak have impacted virtually every sector of the economy. The ramifications of this event will be felt for a significant amount of time.

Investors will have to get adjusted to the nuances and intricacies of deploying money in the stock market at a time where many industries remain at risk.

However, the resilience of some markets has proven valuable amid the chaos. Mobile technologies and some commodities — particularly gold — have jumped significantly during this time.

To help investors navigate this new terrain, the Investing News Network (INN) has prepared a series of articles to catch our investor audience up on the biggest developments related to the pandemic and how the markets are moving. Read on for an overview of key coronavirus topics.

Coronavirus investing: Timeline of events

The effects of COVID-19 are widespread, but the virus has only been around for a relatively short period of time. In this recap, INN explores some of the ways the virus has affected various markets and how countries around the world have reacted.

While it’s easy to get excited about the way some sectors have performed amid the uncertainty caused by the coronavirus, it’s important to also take a step back and remember the seismic impact the virus has had on the world’s markets and the effects that might still be to come.

Coronavirus investing: Big Pharma to the rescue

Given the emergency status of the coronavirus outbreak, the biggest pharmaceutical and biotech names in the public space have moved forward with critical trials to try to find the best answer to the virus.

Companies like Pfizer (NASDAQ:PFE), Moderna (NASDAQ:MRNA), Gilead Sciences (NASDAQ:GILD) and Regeneron Pharmaceuticals (NASDAQ:REGN) have continued the development of promising drugs.

Amid these trials, there have been preemptive deals done as individual stocks support others in the development of treatments.

“From the beginning it was clear that no one company or innovation would be able to bring an end to the Covid-19 crisis,” Pfizer CEO Albert Bouria said when confirming a collaboration with Gilead.

INN’s article goes into the details on these drugs and when people may get access to them.

Coronavirus investing: Small-cap stocks get moving

While major companies are playing a key role in reacting to the coronavirus, INN also covered how small-cap names have made an imprint in the midst of the economic pressures of the crisis.

While it’s widely expected that the top names in pharmaceuticals will lead the way to a vaccine or treatment for COVID-19, small stocks have been able to seize on areas of opportunity such as testing kits.

Devices and operations related to the monitoring of the virus have gained significant interest from investors. Just as the production of medical-grade masks went into high demand, testing kits — particularly fast ones — have become crucial for governments.

Coronavirus investing: ETFs show changes in market

Finally, INN looked at how exchange-traded funds (ETFs) have fared in the wake of the virus.

ETFs are a popular tool for many investors as they provide exposure to an index or particular market without the risk of investing in an individual stock. ETFs can hold stocks, bonds or commodities, and often serve as a way to get a broad view of an industry and its performance.

The general takeaway seems to be that funds in markets like gold and healthcare took hits early on, but have been able to bounce back based on the promise of these industries.

Coronavirus investing: Investor takeaway

The coronavirus pandemic has led to one of the most catastrophic collapses in the global economy in recent history, and the infectious disease isn’t gone yet.

As researchers try to catch up with the effects of the virus and find a proper treatment, investors at both the retail and professional levels will have to continue monitoring the financial markets in order to stay ahead. Financial goals, asset allocation and market volatility are just a few of the factors that will be important to track during this time of turmoil.

Finally, if you’d like to read about the impact of COVID-19 from a resource industry perspective, click here for our coverage of how mining companies have reacted to the disease. Both small-cap stocks and major players across commodities are updating their plans and adjusting to stay profitable in the new normal.

Don’t forget to follow us @INN_LifeScience for real-time news updates.

Securities Disclosure: I, Bryan Mc Govern, hold no direct investment interest in any company mentioned in this article.