What Sectors and Stocks Could Benefit From the Coronavirus Outbreak?

Dear Reader,


The coronavirus outbreak is in full swing as a first death has been reported in Japan and the number of infected people has been revised sharply upward.

But what sectors and what kind of stocks could benefit from the coronavirus crisis, because a crisis it is now? The most obvious candidates are the healthcare sector and healthcare stocks. Most likely, the biggest listed healthcare groups like Pfizer, Novartis, AstraZeneca, GlaxoSmithKline etc. would benefit if they develop a vaccine. The fear of people is a powerful motivator. Fear sells well. I suppose not just one single company would develop the vaccine for coronavirus, so several healthcare stocks would benefit. What is more, large healthcare companies benefit from people buying medicine for influenza-like symptoms like the one exhibited by the coronavirus. What is more, emerging biotechnology companies could prove a big winner. If an obscure biotechnology company develops the coronavirus vaccine first, its stock price could leap many times upward in the matter of weeks.

On the second place, as potential coronavirus crisis beneficiaries I see gold mining stocks. Gold is a famous safe-heaven in times of various crises. The coronavirus crisis should prove no exception. The major gold producing companies as Barrick Gold Corp, Newmont Corporation, AngloGold Ashanti Limited, Kinross Gold Corporation etc. could see their stock prices rise a lot. Smaller gold producers like Gold Fields Limited and Eldorado Gold Corp could experience doubling of their market capitalization in the next one year or so.

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Petar Vladimirov Posledovich is not liable for any investment losses incurred by reading and interpreting blogposts on this blog and posts on social networks.

Conflicts of interest: I may possess some of the securities, currencies or their derivatives mentioned in the blogpost and posts on social networks(Twitter, LinkedIn etc.)!

Respectfully yours,

Petar Posledovich