Coronavirus investing survey: 10 managers share top bets, list risks – Business Insider
Stephen DuFour, manager of the Fidelity Focused Stock Fund at Fidelity Investments: “We have all been conditioned to ‘buy the dips,’ but I fear investors should prepare to be extremely patient if they employ this strategy for many sectors.”
Samantha Lee/Business Insider
1. Which investments would you call under-the-radar opportunities right now?
I believe electronic payments is under-the-radar today.
Prior to the slowdown, this was a very hot sector. Near-term, estimates have come down, but the industry’s long-term secular drivers continue to improve as ecommerce continues to expand.
Plus, the conversion from cash to debit and credit should advance as people avoid cash.
2. What is your most contrarian, or surprising, market call in this environment?
As I listen to other investors, my one contrarian call is that I seem to be more optimistic.
I realize that we have a lot of work to do to defeat the virus and get our economy back on track, but I have been very impressed with the unprecedented monetary and fiscal policy responses around the world. I’m still able to find exciting investment ideas.
3. Name one stock or investment you’re most bullish on right now.
Secular growers with exposure to e-commerce, electronic payments, cloud computing, 5G or telemedicine. I am prepared for economic activity to be modest for at least the next year as we implement modified social distancing and wait for a vaccine.
During this period, people are going to continue to conduct a high percentage of their work, shopping, entertainment, and meals from their homes. This one-year trial period is going to enhance the long-term growth rates of many online businesses.
As remote work, learning, and entertainment become more prevalent, the faster speeds that 5G technology offers should result in strong demand across the ecosystem — phones, chips, and cell towers.
The loosening of the restrictions on telemedicine might prove to be beneficial to health care providers.
4. What is one risk within the market you feel investors are missing?
I am optimistic, but investors should know that companies around the world are experiencing a wide range of economic impact from this downturn.
I have discussed a few sectors that are positioned to grow during this period but many commodity driven industries are going to take numerous years to absorb excess capacity.
We have all been conditioned to “buy the dips,” but I fear investors should prepare to be extremely patient if they employ this strategy for many sectors.