Profit* from Coronavirus??
I find it interesting that the markets are punishing businesses affected by the coronavirus as if it will be a permanent thing. As if people will never travel again in future, not even years from now. And some stocks have gained in value because of very short term increases in sales of hand sanitisers. Safe stocks like supermarkets have suffered major declines, as if people will stop eating food.
Yes, there was probably a correction due, so I am going to look for “safe” stocks that have dropped below their price one year ago.
Westpac $27 > $20. Yes, the banking commission was a factor, but it is down from $25 two weeks ago. It now has a 8% dividend yield. Some businesses might go broke because of the virus, but in the medium term they will be replaced by others. NAB is similar.
Telstra $3.23 > $3.40. Yes, up from a year ago, but down from its recent peak of $3.90. This is a great defensive stock, as it is totally immune.
Harvey Norman $3.71 > $3.29. Recent peak was $4.78. They might have some short term supply chain issues. But long-term they will be unaffected, and the div yield is currently over 9%
BHP $36 > $28. Too hard for an amateur like me, but they are diversified and it feels cheap, down from $41 recently
Qantas $5.68 > $4.04. Down from $7.40 in December. As long as they have no financial issues, you can guarantee that a year from now everyone is taking that overseas trip they are putting off now.
Flight Centre has almost halved from its recent peak, and is down substantially YOY. It will rise again guaranteed
(nothing is guaranteed)
*historically I have lost money investing on the sharemarket, so smart people would avoid by advice!