The biggest change in the world inflicted by the COVID-19 pandemic is the work-from-home economy.
While only about 50% of workers can actually do their job from their home, that is enough to create a shift of seismic proportions in the whole information technology and communications industry.
The shift is so dramatic that it will completely reshape the financial performance of thousands of companies. Some for the better, some for the worse.
But for the ones whose financial performance is being affected for the better, this equates into dramatic share price appreciation that could continue – especially if the pandemic moves into the highly anticipated “second wave”.
By all accounts, and everywhere in the world, infection rates are rising as the fatigue of isolation and social distancing starts to cause widespread adoption of pre-COVID social behaviours.
With the combination of schools restarting, bars, restaurants and movie theatres reopening, and flu season all arriving at once, there should be ZERO surprise that infection rates are exploding.
And then there’s the contingent of the population who chooses to disbelieve that COVID-19 is even real. In this era of rampant human stupidity dominating the online discourse, it is almost certain that companies benefiting from the stay-at-home economy will continue to do so.
In particular, the communications and data storage industries, along with online shopping, seem to be the companies for whom the best is yet to come.
Amazon, for example, has risen by over 100% since the onset of the virus, and looks like its sales are going to continue rising as more and more, people are preferring to avoid bricks and mortar shopping environments.
If the virus explodes to new levels of infection, you can be assured that these patterns will only intensify. You’d better be stocked up on toilet paper before November!
And what about Zoom?
Its shares have increased in value by over 500%, and if the pandemic second wave causes even more people to be sent home, there’s no reason to think that number will not continue rising.
And here’s the thing: people – thanks to the mainstream media – are under the impression that a vaccine is just around the corner, and the pandemic is a temporary phenomenon.
What the media doesn’t mention – because they are essentially journalists who can only describe what happened in the past – is that this could be a permanent new reality.
Think about it.
The Earth is a self-regulating entity, just like the human body is a self-regulating entity.
When your body is attacked by an excess of any virus or bacteria, it automatically deploys a range of natural defence mechanisms that we refer to collectively as the immune response system.
Why would the earth be any different?
As our population continues to multiply, the Earth’s own immune system swings into high gear.
Just as our white blood cells hunt down and kill invasive elements, so the Earth manifests viruses and bacteria to rid itself of the excess population of human beings.
And just as the human body isn’t limited to a single line of defence to rid itself of infection, its silly to assume that COVID-19 is the only strategy the earth can muster.
Could it be that we have entered a new era in human evolution that means infectious diseases are the daily reality that must be defended against?
I think so.
I think the work-from-home economy is thus potentially here to stay, and likely to grow and grow ever bigger.
And as it grows, savvy investors who are quick to act can pick off massive wins as easy as shooting fish in a barrel. If you know what to look for.
This could be a once-in-a-lifetime opportunity to invest in the winners as they solve this economic challenge. To start with, I’ve found seven companies that are poised to benefit from these rising trends and are helping to lead our workforce into the new era of productivity.
Midas Letter is provided as a source of information only, and is in no way to be construed as investment advice. James West, the author and publisher of the Midas Letter, is not authorized to provide investor advice, and provides this information only to readers who are interested in knowing what he is investing in and how he reaches such decisions.
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