The FTSE 100 stock market crash was brutal. The coronavirus pandemic has been unlike anything we’ve seen since the ‘Spanish’ flu pandemic around 100 years ago. And our lifestyles have changed forever. The human tragedy of it all is heart-breaking.
But there are some ‘gifts’ in the situation, and I’ve been looking for them. I think one is the opportunities now present in the stock market recovery. Another is that we may emerge stronger, more learned, and with a collectively altered focus, overall.
Although there have been inconveniences, the benefits of lockdown have been many for me. Such as the opportunity for self-analysis and a re-evaluation of priorities. Indeed, the separation from family and friends has driven home how important and first-priority my love for them and their love for me really is. My guess is that my personal experience is like that of many others.
The stock market mirrors trends
Yet, before this pandemic, we were already changing. It’s heartening to see the speed with which new technologies have been enabling the push for renewable sources of energy, such as solar and wind. And the way developments have accelerated the hunt for ways to use the energy, such as electric-powered vehicles.
And as with every disruptive revolution through history, events have been mirrored in the stock markets of the world. Think of the companies that have come and gone. Whole sectors that have vanished. And new ones that have emerged and shot to ascendency. Indeed, some of the world’s largest publicly listed companies today, such as Amazon, Microsoft, and Apple didn’t exist at all 50 years ago.
Jeff Bezos, the richest man in the world and founder of Amazon – the most valuable public company in the world today – hadn’t even thought of the idea for the company 30 years ago! Imagine what getting in early on the stock would have done for your portfolio.
My point is that there are always big opportunities for investors in the markets. And today, with companies reporting on their preparations for their emergence from lockdown and the stock market recovery, we are seeing opportunities again. And I reckon it’s a great time to consider where you would invest £10,000.
Just yesterday I identified what to me looks like a cracking opportunity with FTSE 100 constituent Next. The firm released a super and detailed update about how it is preparing for business after the lockdown eases. And I reckon the insights we can glean from the directors’ commentary are useful for gauging what may lie ahead for some of the businesses behind the shares we can buy in the FTSE 100 today.
So, I’d hunt for companies in the FTSE 100 such as Next for my £10k. Transparency in communications from such companies is one key to successful investing. And my plan is to diversify across several holdings of well-managed firms with strong quality metrics as they emerge from lockdown. Ten years from now, I may be glad that I did.
Kevin Godbold has no position in any share mentioned. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Teresa Kersten, an employee of LinkedIn, a Microsoft subsidiary, is a member of The Motley Fool’s board of directors. The Motley Fool UK owns shares of and has recommended Amazon, Apple, and Microsoft and recommends the following options: long January 2021 $85 calls on Microsoft, short January 2021 $115 calls on Microsoft, short January 2022 $1940 calls on Amazon, and long January 2022 $1920 calls on Amazon. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.