Covid-19 Investment Implications Series: The World After Covid Primer
Covid-19 is one of those rare events in history–like the Great Depression and fall of the Berlin Wall that will completely reshape geopolitics, societies, and markets. It is likely to be a catalyst for further tectonic shifts in the US & China decoupling, peak globalisation of supply chains and central bank quantitative failure. The consequences could be far-reaching, ranging from social unrest to further instability in oil, new economic doctrines, and re-evaluation of the social contract in sovereign states. Alongside a global survey of BofA analysts covering 3,000 companies and spanning 25 sectors, we outline5 themes with US $20tn market cap of enablers for the world post-Covid. Among the secular beneficiaries are healthcare, digital consumer, ESG, staples, industrial real estate, and technology. Some of the challenged sectors include: fossil energy, commercial real estate, autos, legacy consumer, and the sharing economy.