There are opportunities to make – and lose – a lot of money in this market. Last week I considered some higher risk share prices that have been heavily hit by this lockdown. There are some interesting trades to contemplate but the risks and unknowns are considerable.
For example: what will post-lockdown social distancing policies look like and how prohibitive might they be to visiting shops and bars?
It will surely be a bumpy ride, whichever way the government decides. I continue to monitor these areas of the market, but it must be stressed that not getting involved is always an option – there are plenty of other opportunities to consider where a company’s trading prospects need not depend upon shifting government pandemic policy.
For many, a more appropriate risk/reward balance can be found in looking for growing, high-quality companies with strong trading prospects not adequately reflected in their share prices. This is what I spend the bulk of my time looking for.
This search for high quality companies with strong underlying trading momentum that have compounding potential has led me to a different sector – one that, if anything, stands to benefit from present conditions…
Video games: the perfect lockdown activity?
Video games…
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