I’ll start this post by calling out that we’re still in a pretty tough economic time. With almost 15% of American currently out of a job, a lot of people are much more worried about their next paycheck and investing in the stock market is the last thing on their minds. However, even in the midst of a difficult financial time, you still should having an investing strategy. For some that’ll be no investing at all, in fact selling some stocks/mutual funds to stay afloat. However for others, you may still be investing in the stock market. I’m currently not putting any new ‘mad money’ in the market, but am still putting in retirement money into my 401k. I do watch stocks daily and am always looking for investment opportunities, if and when the time is right again.

Sure stocks have been on a roller coaster and even some assets that we thought were old hat have turned out to be anything but. Precious metals are increasing in popularity as an investment opportunity because the confidence in our financial system (i.e. stocks) has also taken a hit. There are some stocks that are doing quite well (think things you do while working from home) and others that are not doing so hot. I’d love to take you through a commentary on some of the stocks in the news today, with the full caveat that I realize that not everyone is in a place where they should be investing, and also call out that I’m not a financial professional and this is purely my own thoughts.

Educating Yourself Can Be A Lot

Before jumping into the stocks, it’s worth calling out that it can take a lot of time and energy to do your proper due diligence and even then there’s still a fair amount of risk involved in trading stocks. If you’re just getting started, it can be even more overwhelming. Using stock information websites such as MarketWatch, Investopedia, Google Finance, CNBC and Stockcharts, can give you a good start on doing your research. These specialized websites will explain industry terms, phrases, and current trends. Of course like doing research on any product; getting a variety of opinions, reviews and thoughts is important and I’ll often check several websites to learn the best. Whether it’s analysts that I respect and value their opinion of, or interviews with CEOs (always take with a grain of salt…they’re of course biased but still good to hear), there’s a ton of information that you can review to learn and make your own decisions!

Work from Home Technology is Big

Unless your work is completely independent and you don’t interact with anybody else, you’ve used a video conferencing solution in the past 2 months. If you’re like me, you use video conferencing tools on a daily basis. The big ones of course are Google Hangouts/Meet, Microsoft Teams and Zoom. Some would argue that for Google and Microsoft these are more of side projects rather than their main flagship product, and it might show when you use it. Zoom on the other hand has all the conference call features you would expect for a professional customer. The company went public just last year. The IPO was in April of 2019 and the stock was valued at around $60. Right now, just one year on, it’s worth $155. That’s a more than a 100% rise in just one year. Businesses around the world are using Zoom because it has features such as document sharing, easy-to-use executive functions, and a good reputation for smooth connections. Although it’s had some security issues, it’s definitely a crowd favorite and I think that if/when we return to ‘normal’, video conferencing is here to stay. Here’s a more in-depth video talking through the stock fundamentals which in my opinion is helpful to learn about Zoom but also about trading stocks!

Processing Payments Digitally

With so much of our shopping done online during this pandemic, payment processing is big. Even in stores, I personally much prefer to use my Apple Pay from my phone so I don’t actually have to swipe or insert my credit card. A couple of companies that have done well are PayPal and Square. Paypal has had a rapid rise in users with over 20 million joining the platform just in the first three months of this year. Why is this occurring? Many experts believe that there has been a lack of confidence in banks ( I heard stories of PayPal processing the PPP business loans much faster than traditional banks) but it’s also because online checkout is made much easier by having a Paypal account. You don’t need to put in any bank details as you would a debit or credit card. Instead, it uses a One Touch Payment system that remembers the machine, IP address, location, and even browser add-ons such as Honey. This allows consumers to make quick purchases and merchants are increasingly offering Paypal as a one-click option at their checkouts. I think that long after this pandemic is over, the way we purchase and spend money is changing, and innovative companies are poised to be successful.

Thinking Towards the Future

As you’re looking and thinking into stocks, try to envision what this new world will look like once we’re out of it and how we’ll live out lives. There are definitely plenty of businesses that are adapting and making changes to set them up for success. Tesla for example announced it might be moving headquarters. It will be moving to Texas where there are less stringent tax laws and production can continue throughout the lockdown. If you’ve followed this story it may just appear the rash action from a few Tweets from their CEO, but also it may be part of a longer term plan. Other examples include transportation and delivery, as we’re ordering a ton more via delivery right now, and Amazon stock is a good example of that, they’ve been able to do well throughout this pandemic.

Summary

The stock market is full of choices for those who can see past the red. Historically the stock market has always bounced back after a period of recession, and I see no reason to believe that this won’t be the case for this current environment. Be on the lookout for innovative companies that are able to do well even during COVID-19; I think those will be winners for the long-term!

Disclosure: Some links are affiliate links that earn me a commission. I own a few shares of Square, Inc but aside from that have no positions in other stocks mentioned