In these hours, more than one broker is awake trying to guess how to take advantage of the market collapse caused by the coronavirus pandemic
On September 11, 2001, Bobby Axelrod won $ 750 million betting on the market against airlines when the Twin Towers were still on fire.
Although this only happened in the imagination of the writers of Billions (one of the favorite series by Wall Street investors), More than one broker is awake these hours trying to guess how to take advantage of the collapse of the market caused by the coronavirus pandemic.
The question everyone asks is: how to bet on a market that seems to be aimless? What strategy to take and which sectors to look at amid the economic chaos caused by the Covid-19 eruption?
“If we wanted to follow Bobby Axelrod’s strategy, we are already running late, because everything has already collapsed to levels not seen since World War II,” says Alejandro Henke, of Proficio Investment. And he warns that in the first quarter of the year, the Chinese economy will show its first decline in decades: “Something that has not happened since 1976,” he stresses.
However, there are those who assure that there is still time to play the reverse strategy to which the bold and unscrupulous Axelrod launched: invest in the sectors that will recover even after the coronavirus disaster. Even in a scenario in which the world economy will go into recession.
What are we going to spend after this crisis? “Clearly in health, food and everything that has to do with technologies that keep us communicated without risk of contagion from any other disease that may come after it, such as communication and entertainment technology,” says Claudio Zuchowicki, economist.
Technology companies have not only been leading the market, but they are one of the few that have been sustained amidst the general collapse: Microsoft, Apple, and Cisco had rises when the rest fell apart. The same happened with the giant Amazon, which allows you to buy all kinds of products online and whose global value is equivalent to two Argentine GDPs.
“Other sector to watch carefully is that of laboratories, especially those that are against the clock trying to find the coronavirus vaccine or antidote. And everything related to health, will be a sector that will recover, without a doubt” Zuchowicki adds.
It is difficult, if not impossible, to try to envision a strategy as profitable as the one applied by the protagonist of Billions in a scenario where everything has become uncertainty. But sometimes, looking for ideas in the world of fiction can contribute something. At least to distract us in the midst of so much disaster.
By Candelaria de la Sota – @delaSotaCande
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