Many analysts and public officials are billing the second quarter this year as the “time for recovery”.
Expectations are for key economies to reach the number of vaccinations required to finally be able to reopen the economy for good this time. Governments and central banks are still providing full-on stimulus, and there is an expectation of pent-up demand.
Some companies are better poised than others to ride the wave.
If you are looking to diversify your portfolio, here are a couple of potential movers and shakers that you might want to take a deeper dive into.
Visa V.N and MasterCard MA.N haven’t been talked about much lately, even though they’ve both been beneficiaries of the move to online shopping during the lockdowns.
Both have recovered fully from the initial covid drop. And, they’re even trading higher than they did before the pandemic.
Following the collapse of Wirecard, both have also expanded their technology and reach. But there is one area they haven’t touched yet: crypto.
It’s been all the rage recently, with more and more businesses offering cryptos as payment methods. However, the two largest payment processors in the world have yet to sign on.
But, if they did – and now would be a good time for that – whichever one is the first (or both) could see a substantial boost in their shares. The trick with it, though, is that if either allows crypto transactions, it’s likely to be a sudden announcement.
Airlines might seem to be a logical play as economies reopen.
While many might be thinking of countries that are more advanced in the vaccination process, the reality is they have likely already had a spike in price. Which is why Lufthansa LHAG.DE is one of the more attractive options for this kind of play.
Unlike its rivals, such as Air France AIRF.PA, it has a solid cash base and unwavering commitment of support from the German government. Due to being more of a business airline, it might not experience as much of a rebound as fast as low-cost competitors.
However, since investing in airlines is always a risky business, sometimes reducing risk is the more profitable option.
In a similar vein, investors might be moving out of pandemic favorites in the tech sector. But there is certainly one that stands more to gain from reopening: Uber UBER.N.
Just recently, Uber expanded their network in Germany, through its Eats division. The company has managed to stay profitable in the pandemic and now could see a substantial boost with travel returning.
Uber can take advantage of both sides: the people who have saved up during the pandemic finally being able to escape and take advantage of still cheap flights. And people who have lost their jobs, or seen their income cut because of the pandemic, will be more eager to sign up as drivers.