{"id":154597,"date":"2020-03-31T14:30:16","date_gmt":"2020-03-31T14:30:16","guid":{"rendered":"https:\/\/stockchase.com\/discover\/?p=154597"},"modified":"2020-03-31T19:33:15","modified_gmt":"2020-03-31T19:33:15","slug":"covid-19-stocks","status":"publish","type":"post","link":"https:\/\/stockchase.com\/discover\/covid-19-stocks\/","title":{"rendered":"COVID-19 Stocks to Save Your RRSP + Forecasts and Facts (Updated)"},"content":{"rendered":"<p>Any investor practising <span style=\"color: #000080;\"><span lang=\"zxx\"><u>hand<b>&#8211;<\/b>washing and social distancing<\/u><\/span><\/span> is keeping his eye on the Big Graph. No, not the 50-day moving average, but the <span style=\"color: #000080;\"><span lang=\"zxx\"><u><a href=\"https:\/\/coronavirus.jhu.edu\/map.html\" target=\"_blank\" rel=\"noopener\">Johns Hopkins live COVID-19 map<\/a><\/u><\/span><\/span> that tracks the number of new, current and resolved cases country-by-country around the world. In particular, investors are training their sights on the Daily Increase graph nestled (bottom-right) and searching for the the flatline for certain countries.<\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Discover What&#039;s Inside<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/stockchase.com\/discover\/covid-19-stocks\/#Flatline\" >Flatline<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/stockchase.com\/discover\/covid-19-stocks\/#Covid-19_Stocks_%E2%80%93_Market_Recovery\" >Covid-19 Stocks &#8211; Market Recovery<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/stockchase.com\/discover\/covid-19-stocks\/#Previous_Market_Coverage_of_Covid-19_Stocks\" >Previous Market Coverage of Covid-19 Stocks<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/stockchase.com\/discover\/covid-19-stocks\/#China_COVID-19_Stocks_Recovery\" >China COVID-19 Stocks Recovery<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/stockchase.com\/discover\/covid-19-stocks\/#COVID-19_Stocks_on_the_North_American_Markets\" >COVID-19 Stocks on the North American Markets<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/stockchase.com\/discover\/covid-19-stocks\/#CAP_REIT_and_Canadian_REITs_as_COVID-19_Stocks\" >CAP REIT and Canadian REITs as COVID-19 Stocks<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/stockchase.com\/discover\/covid-19-stocks\/#BAM\" >BAM<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/stockchase.com\/discover\/covid-19-stocks\/#Amazon_and_Netflix\" >Amazon and Netflix<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/stockchase.com\/discover\/covid-19-stocks\/#Gold_and_Silver\" >Gold and Silver<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/stockchase.com\/discover\/covid-19-stocks\/#Cash\" >Cash<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/stockchase.com\/discover\/covid-19-stocks\/#COVID-19_Stocks_and_Coronavirus_Q_A\" >COVID-19 Stocks and Coronavirus Q&amp;A<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/stockchase.com\/discover\/covid-19-stocks\/#COVID-19_Investors\" >COVID-19 &amp; Investors<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/stockchase.com\/discover\/covid-19-stocks\/#How_do_I_protect_myself_from_COVID-19\" >How do I protect myself from COVID-19?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/stockchase.com\/discover\/covid-19-stocks\/#How_deadly_is_COVID-19\" >How deadly is COVID-19?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/stockchase.com\/discover\/covid-19-stocks\/#Why_is_testing_so_important\" >Why is testing so important?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/stockchase.com\/discover\/covid-19-stocks\/#When_will_there_be_a_COVID-19_cure\" >When will there be a COVID-19 cure?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/stockchase.com\/discover\/covid-19-stocks\/#When_will_COVID-19_Stocks_Markets_hit_bottom\" >When will COVID-19 Stocks &amp; Markets hit bottom?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/stockchase.com\/discover\/covid-19-stocks\/#In_what_sector_should_I_pick_my_COVID-19_Stocks_to_buy\" >In what sector should I pick my COVID-19 Stocks to buy?<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"Flatline\"><\/span>Flatline<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>As markets enter April, the flatline is more important than any earnings beat.<\/p>\n<p>As of this writing, Italy is poised to flatline, which is key, because that points to a decline in new cases. Case in point: after March 2, <span style=\"color: #000080;\"><span lang=\"zxx\"><u><a href=\"https:\/\/www.bbc.com\/news\/world-asia-51836898\" target=\"_blank\" rel=\"noopener\">South Korea<\/a><\/u><\/span><\/span> didn&#8217;t so much as flatline, but plunge. That marked decline was a result of their government launching pro-active testing to control the virus. Wisely, <a href=\"https:\/\/www.npr.org\/2020\/03\/25\/820595489\/why-germanys-coronavirus-death-rate-is-far-lower-than-in-other-countries?utm_source=pocket-newtab&amp;t=1585663848188\" target=\"_blank\" rel=\"noopener\">Germany<\/a> has followed the same strategy. Spain, now struggling with the third-most cases in the world, may be flatlining; another few days will confirm this trend. The United States, which <span style=\"color: #000080;\"><span lang=\"zxx\"><u><a href=\"https:\/\/www.npr.org\/sections\/health-shots\/2020\/02\/27\/809936132\/cdc-fixes-issue-delaying-coronavirus-testing-in-u-s\" target=\"_blank\" rel=\"noopener\">stumbled into combating the virus<\/a><\/u><\/span><\/span> remains a step behind its European peers and likely won&#8217;t flatline until sometime in April. The same likely goes with the U.K. As for China, the original epicenter, its graph flatlined during the month of March. Gradually, the world&#8217;s other uber-economy is returning to work, including its <span style=\"color: #000080;\"><span lang=\"zxx\"><u><a href=\"https:\/\/www.chinadaily.com.cn\/a\/202003\/30\/WS5e814814a310128217282deb.html\" target=\"_blank\" rel=\"noopener\">film and TV<\/a><\/u><\/span><\/span> sector. The flatline, therefore, is a crucial indicator\u2014along with hourly news of government aid and the launch of rapid-testing kits like <span style=\"color: #000080;\"><span lang=\"zxx\"><u><a href=\"https:\/\/www.bnnbloomberg.ca\/abbott-shares-surge-in-pre-market-on-5-minute-covid-19-test-1.1414478\" target=\"_blank\" rel=\"noopener\">Abbott Technologies<\/a><\/u><\/span><\/span>&#8216;, that indicate how markets will swing on a given day.<\/p>\n<p>After the virus flatlines, cases will decline which will lead to governments ending their nation-wide lockdowns. Again, China is the model, and it appears Italy will follow this pattern in April. Coinciding with the arrival of spring, pent-up consumer demand will flood the world&#8217;s economies and end this miserable draught. Expect stocks to rebound at this point, but how far and how fast they recover is an open question.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Covid-19_Stocks_%E2%80%93_Market_Recovery\"><\/span>Covid-19 Stocks &#8211; Market Recovery<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Consensus puts a market recovery to stretch well into the second half of this year and could vary country by country. Another complication is the November election. Historically, U.S. election years are choppy for markets until polls indicate a likely winner. Add to this another twist: the oil war between Saudi Arabia and Russia that are pushing U.S. shale producers out of business and pressuring oil prices to historic lows.<\/p>\n<p>Given this perfect storm, what the hell do investors do?<\/p>\n<p>The safe money will invest in large caps with strong balance sheets. We&#8217;re talking about the <a href=\"https:\/\/stockchase.com\/AMZN-Q\">Amazons<\/a>, <a href=\"https:\/\/stockchase.com\/AAPL-Q\">Apples<\/a> and <a href=\"https:\/\/stockchase.com\/MSFT-Q\">Microsofts<\/a> of the world. They&#8217;ve been withstanding the ugly sell-offs and bouncing back on buy days.<\/p>\n<p>The riskier\u2014but possibly lucrative\u2014trade comes in stocks that have been beaten ugly and left for dead. Buying them is like touring Chernobyl. We&#8217;re talking oil stocks. WCS dipped to a pitiful US$3.82 on March 30. Could oil possibly fall any lower? Yes. Sooner or later, the oil war and COVID-19 will end, and consumers will be back on the roads in the spring and summer.<\/p>\n<p><img decoding=\"async\" class=\"alignnone size-medium wp-image-158054\" src=\"https:\/\/stockchase.com\/discover\/wp-content\/uploads\/2020\/03\/CNQ-T-1-760x254.jpg\" alt=\"CNQ-T stock chart\" width=\"380\" \/>\u00a0 \u00a0 <img decoding=\"async\" class=\"alignnone size-medium wp-image-158055\" src=\"https:\/\/stockchase.com\/discover\/wp-content\/uploads\/2020\/03\/SU-T-1-760x254.png\" alt=\"SU-T stock chart\" width=\"380\" \/><\/p>\n<p>In Canadian oil, the studier names are <span style=\"color: #000080;\"><span lang=\"zxx\"><u><a href=\"https:\/\/stockchase.com\/CNQ-T\">CNQ<\/a><\/u><\/span><\/span> and Suncor, both of which <a href=\"https:\/\/stockchase.com\/expert\/view\/1008\/Paul-Harris-CFA\">Paul Harris<\/a> feel can ride out this storm and even buy their weaker peers. For <a href=\"https:\/\/stockchase.com\/expert\/view\/137\/Josef-Schachter\">Josef Schachter<\/a>, who has been buying oil stocks, he advises picking up CNQ below $12 and holding onto it. Similarly, <a href=\"https:\/\/stockchase.com\/expert\/view\/1241\/Jaime-Carrasco\">Jaime Carrasco<\/a> advises caution when buying half an entry tranche of Suncor now and the other later. He targets $40 for <span style=\"color: #000080;\"><span lang=\"zxx\"><u><a href=\"https:\/\/stockchase.com\/SU-T\">Suncor<\/a><\/u><\/span><\/span>. <a href=\"https:\/\/stockchase.com\/expert\/view\/42\/Michael-Sprung\">Michael Sprung<\/a> feels Suncor will survive, but perhaps not its dividend.<\/p>\n<p><img decoding=\"async\" class=\"alignnone size-medium wp-image-158056\" src=\"https:\/\/stockchase.com\/discover\/wp-content\/uploads\/2020\/03\/BKNG-Q-1-760x254.jpg\" alt=\"BKNG-Q stock chart\" width=\"860\" \/><\/p>\n<p>As with oil, travel won&#8217;t disappear, and it will flourish in the warm, hot months ahead. I&#8217;m still bearish about cruiselines, expecting vacationers to long remember horrific news stories of passengers stranded on these floating petri dishes and avoid them (astonishingly, it&#8217;s still happening). The American airline industry will fare better, but still take several quarters to recover. At least businesspeople will resume flying. However, travellers will come back and <span style=\"color: #000080;\"><span lang=\"zxx\"><u><a href=\"https:\/\/stockchase.com\/BKNG-Q\">Booking Holdings<\/a><\/u><\/span><\/span> <span style=\"color: #000080;\"><span lang=\"zxx\"><span style=\"color: #000000;\">will remain the biggest online vacationing retailer and its various brands will benefit from the revival of consumer travel. Analyst <a href=\"https:\/\/stockchase.com\/expert\/view\/1272\/Stan-Wong\">Stan Wong<\/a> advises layering in and not diving head-first though.<\/span><\/span><\/span><\/p>\n<p><img decoding=\"async\" class=\"alignnone size-medium wp-image-158057\" src=\"https:\/\/stockchase.com\/discover\/wp-content\/uploads\/2020\/03\/DG-N-1-760x254.jpg\" alt=\"DG-N stock chart\" width=\"380\" \/> \u00a0 <img decoding=\"async\" class=\"alignnone size-medium wp-image-158058\" src=\"https:\/\/stockchase.com\/discover\/wp-content\/uploads\/2020\/03\/DOL-T-1-760x254.jpg\" alt=\"DOL-T stock chart\" width=\"380\" \/><\/p>\n<p><span style=\"color: #000080;\"><span lang=\"zxx\"><span style=\"color: #000000;\"> Lastly, with reduced wages and high unemployment, dollar stores should benefit from strong demand from consumers who need staples at the lowest-possible prices. The go-to names here are <a href=\"https:\/\/stockchase.com\/DG-N\">Dollar General<\/a> in the States and <a href=\"https:\/\/stockchase.com\/DOL-T\">Dollarama<\/a> in Canada. The latter has vastly outperformed the TSX in the past month at 1.29% vs. -17.7%, though Dollarama&#8217;s high PE (currently almost 23x), gives <a href=\"https:\/\/stockchase.com\/expert\/view\/1274\/Christine-Poole\">Christine Poole<\/a> pause. Both are defensive names and still attracting consumers during during this lockdown.<\/span><\/span><\/span><\/p>\n<p><span style=\"color: #000080;\"><span lang=\"zxx\"><span style=\"color: #000000;\"> In the meantime, stay calm and stay home.<\/span><\/span><\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Previous_Market_Coverage_of_Covid-19_Stocks\"><\/span>Previous Market Coverage of Covid-19 Stocks<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Today, we continue Stockchase&#8217;s coverage of the COVID-19 Stocks (aka Coronavirus Stocks). Canadians are living in wartime: massive disruptions to work and life, everyday routines paused and uncertainty. Investors are watching markets on many falls fall and bounce in wild 5-10% swings, and feel like they&#8217;re visiting Chernobyl whenever they open up their trading accounts.<\/p>\n<p>Do I sell? &#x1f4b2;<br \/>\nBuy? &#x1f6d2;<br \/>\nWhere&#8217;s the bottom? &#x2b07;<\/p>\n<p>How long will this last? There are no easy answers, but all wars end, and the COVID-19 pandemic and COVID-19 Stocks Opportunities will eventually end too.<\/p>\n<p>In the meantime, <a href=\"https:\/\/www.canada.ca\/en\/public-health\/services\/publications\/diseases-conditions\/how-to-care-for-person-with-covid-19-at-home-advice-for-caregivers.html#section-8\" target=\"_blank\" rel=\"noopener\">protect yourself and loved ones<\/a> by washing and social distancing.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"China_COVID-19_Stocks_Recovery\"><\/span>China COVID-19 Stocks Recovery<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Watch China&#8217;s recovery. &#x1f440;<\/p>\n<p>China is gradually bouncing back while the number of cases continues to rise in Europe and the United States. (<span style=\"color: #000080;\"><span lang=\"zxx\"><u><a href=\"https:\/\/coronavirus.jhu.edu\/map.html\" target=\"_blank\" rel=\"noopener\">Italy has overtaken China<\/a><\/u><\/span><\/span> with the most deaths, likely from having the <span style=\"color: #000080;\"><span lang=\"zxx\"><u><a href=\"https:\/\/www.popsci.com\/story\/health\/covid-19-coronavirus-death-rate-by-age\/\" target=\"_blank\" rel=\"noopener\">oldest population in Europe<\/a><\/u><\/span><\/span>.) In contrast, China is not reporting any new native cases.<\/p>\n<p>In a dramatic reversal, China&#8217;s cases are now <span style=\"color: #000080;\"><span lang=\"zxx\"><u><a href=\"https:\/\/ca.reuters.com\/article\/topNews\/idCAKBN21A014\" target=\"_blank\" rel=\"noopener\">coming from abroad<\/a>,<\/u><\/span><\/span> and authorities are vigilant about screening these imports.<\/p>\n<p>China is over the hump and now its economy is re-awakening.<\/p>\n<p><span style=\"color: #000080;\"><span lang=\"zxx\"><u><a href=\"https:\/\/www.japantimes.co.jp\/news\/2020\/03\/23\/business\/china-coronavirus-rebound-economy\/#.XnjVl25FxPY\" target=\"_blank\" rel=\"noopener\">Bloomberg estimates<\/a><\/u><\/span><\/span> 85% of economic activity has returned, excluding Hubei province, the epicentre of COVID-19. More and more factories and workplaces are getting \u201cback to normal,\u201d though people are working at a slower pace.<\/p>\n<p>Around 70% of key export and import firms have resumed work, with production capacity hovering above 70%. As expected, restaurants and services lag at 60%, and nearly half of consumer companies don&#8217;t have enough cash to survive the next six months. China&#8217;s economy still has a ways to go, but its progress offers hope to the West.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"COVID-19_Stocks_on_the_North_American_Markets\"><\/span>COVID-19 Stocks on the North American Markets<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Meanwhile, North American markets continue to experience volatility.<\/p>\n<p>For the first time, investors are following the rate of new cases, particularly in the United States, instead of quarterly earnings. As of market close Monday, March 23, the S&amp;P has fallen nearly 35% since its Feb. 19 peak as western governments hurl stimulus and slash interest rates to keep capital flowing through the veins of the economy like pints of freshly donated blood. Based on what I&#8217;ve read from various financial analysts (and not social media), I can&#8217;t see markets falling much beyond 40% and certainly no more than 50%, which was the trough of the 2008-9 recession 11 years ago. This week, the U.S. Will release jobless numbers on Thursday, and it&#8217;s an open question whether the market has already priced in a brutal jump in claims or not.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"CAP_REIT_and_Canadian_REITs_as_COVID-19_Stocks\"><\/span>CAP REIT and Canadian REITs as COVID-19 Stocks<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><img decoding=\"async\" class=\"alignnone size-medium wp-image-116125\" src=\"https:\/\/stockchase.com\/discover\/wp-content\/uploads\/2019\/10\/CAR.UN-1-760x254.jpg\" alt=\"Canadian REITs\" width=\"860\" \/><\/p>\n<p>If you have a rainy day fund, now&#8217;s the time to dip into it.<\/p>\n<p>Those with a long-term investment horizon&#8211;and still have some dry powder left after the initial stock sell-off&#8211;can peck away at stocks that haven&#8217;t been this cheap since the November 2016 U.S. election. Fears of Canadians being unable to pay their rent sent <a href=\"https:\/\/stockchase.com\/CAR.UN-T\">CAP REIT<\/a> plunging 15% today and making a new 52-week low. It closed at $37.85, a stunning fall from $61.29 just three weeks ago.<\/p>\n<p>It had been outperforming the market, and its crash has raised its meager dividend yield to 3.22%. Short-term, CAP REIT will probably remain under pressure, though they could change if Prime Minister Trudeau announces relief for renters. But looking long-term, after Canada recovers from COVID-19, apartment demand will rebound, given the shortage of rentals in Canada, and CAP REIT should bounce back accordingly.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"BAM\"><\/span>BAM<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><img decoding=\"async\" class=\"alignnone size-medium wp-image-156306\" src=\"https:\/\/stockchase.com\/discover\/wp-content\/uploads\/2020\/03\/BAM.A-T-1-760x254.jpg\" alt=\"Brookfield Asset Management as a COVID-19 Stock\" width=\"860\" \/><\/p>\n<p>Similarly, <a href=\"https:\/\/stockchase.com\/BAM.A-T\">Brookfield Asset Management<\/a> (\u201cthe BAM\u201d) held out until Monday when it plunged 14%. Strong management and fine assets make this a confident, long-term buy. On Monday, it closed at nearly half its 52-week high of $90.72, but with a dividend paying 1.73%, it&#8217;s not for income investors.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Amazon_and_Netflix\"><\/span>Amazon and Netflix<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><img decoding=\"async\" class=\"alignnone size-medium wp-image-156307\" src=\"https:\/\/stockchase.com\/discover\/wp-content\/uploads\/2020\/03\/AMZN-Q-1-760x254.png\" alt=\"Amazon and Netflix as COVID-19 Stocks\" width=\"850\" \/><\/p>\n<p>With people staying home, <a href=\"https:\/\/stockchase.com\/AMZN-Q\">Amazon<\/a> and <a href=\"https:\/\/stockchase.com\/NFLX-Q\">Netflix<\/a> are rallying. A month ago, Amazon was only $100 higher than its Monday close of $1,902.83. Netflix has shed only $10 in the past 30 days, too, closing Monday at $360.27. The math is simple: as long as North American and Europeans self-quarantine, these will be steady-eddys or climbers.<\/p>\n<p><img decoding=\"async\" class=\"alignnone size-medium wp-image-151242\" src=\"https:\/\/stockchase.com\/discover\/wp-content\/uploads\/2020\/03\/ABX-T-1-760x254.jpg\" alt=\"ABX-T stock chart\" width=\"400\" \/> <img decoding=\"async\" class=\"alignnone size-medium wp-image-137560\" src=\"https:\/\/stockchase.com\/discover\/wp-content\/uploads\/2020\/01\/AEM-T-1-760x254.jpg\" alt=\"AEM-T stock chart\" width=\"400\" \/><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Gold_and_Silver\"><\/span>Gold and Silver<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Meanwhile, gold and silver stocks continue to leap, as investors flock to safety like birds in a storm. But are the shiny rocks a slam dunk. The charts of two of the biggest mining stocks, <a href=\"https:\/\/stockchase.com\/ABX-T\">BarrickGold<\/a> and <a href=\"https:\/\/stockchase.com\/AEM-T\">Agnico Eagle<\/a> show a 16-21% drop in the past month and their own share of volatility. I&#8217;m no gold bug, so I offer a caveat if you&#8217;re considering this space.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Cash\"><\/span>Cash<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Finally, if don&#8217;t feel comfortable picking away at anything now, just hold onto your cash. Cash remains king.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"COVID-19_Stocks_and_Coronavirus_Q_A\"><\/span>COVID-19 Stocks and Coronavirus Q&amp;A<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>This is our 5th COVID-19 Stocks post, we called them Coronavirus Stocks posts until today. We previously wrote about the <a href=\"https:\/\/stockchase.com\/discover\/stock-opportunities-coronavirus-selloff\/\">Coronavirus Selloff<\/a>, the <a href=\"https:\/\/stockchase.com\/discover\/coronavirus-stocks-buy-avoid\/\">Stocks to Buy or Avoid<\/a> and built a full list of questions and answers about the <a href=\"https:\/\/stockchase.com\/discover\/stock-market-coronavirus-stocks-buy\/\">Coronavirus Market Scare<\/a>. We also have our mega list of <a href=\"https:\/\/stockchase.com\/discover\/coronavirus-stocks-opportunities-mega-list\/\">Coronavirus Stocks<\/a> opportunities.<\/p>\n<p><i>Don&#8217;t worry. Things will change.<br \/>\n(Zen)<\/i><\/p>\n<p>When?<\/p>\n<h2><span class=\"ez-toc-section\" id=\"COVID-19_Investors\"><\/span>COVID-19 &amp; Investors<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Investors are trained to be rational and suppress their emotions. Unless you need the money now, I don&#8217;t suggest selling, even as the TSX and Dow plunge 10% like it did yesterday. Instead, hold\u2014and hold your nose if you look at your stocks.<\/p>\n<p>Better yet, keep an eye on your investment horizon and know that markets <i>will <\/i>recover as they did starting in March 2009, when it also looked like the world was ending.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"How_do_I_protect_myself_from_COVID-19\"><\/span>How do I protect myself from COVID-19?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Wash your hands with soap or a hand sanitizer. Sneeze and cough into your sleeve. Do not shake hands. Keep a distance from others. Stay home, if you are sick. <span style=\"color: #000080;\"><span lang=\"zxx\"><u><a href=\"https:\/\/www.ontario.ca\/page\/2019-novel-coronavirus#section-8\" target=\"_blank\" rel=\"noopener\">More information<\/a><\/u><\/span><\/span>.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"How_deadly_is_COVID-19\"><\/span>How deadly is COVID-19?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The virus can kill and it is infectious. <i><b>However, most people recover<\/b><\/i>. As of this writing (March 16, evening), <a href=\"https:\/\/coronavirus.jhu.edu\/map.html\" target=\"_blank\" rel=\"noopener\">7,330 have died worldwide, but 80,236 have recovered<\/a>, based on this live map by Johns Hopkins University.<\/p>\n<p>Further, the <a href=\"https:\/\/www.popsci.com\/story\/health\/covid-19-coronavirus-death-rate-by-age\/\" target=\"_blank\" rel=\"noopener\">virus claims older victims, based on data supplied by the CCDC<\/a> (China&#8217;s Centre for Disease Control, dated March 5). Those older than 70 make up only 12% of cases, but account for 50% of deaths. In contrast, the fatality rate below age 50 is only 1%. South Korea has one of the lowest fatality rates, while Italy&#8217;s is 10 times higher. One reason is age. According to a <a href=\"https:\/\/www.cnn.com\/2020\/03\/16\/opinions\/south-korea-italy-coronavirus-survivability-sepkowitz\/index.html\" target=\"_blank\" rel=\"noopener\">2015 U.N. report<\/a>, 28.6% of Italy is 60 or older, while South Korea is 18.5%.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Why_is_testing_so_important\"><\/span>Why is testing so important?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Another reason for the disparity between South Korea and Italy is testing.<\/p>\n<p>As of March 8, <a href=\"https:\/\/www.cnn.com\/2020\/03\/16\/opinions\/south-korea-italy-coronavirus-survivability-sepkowitz\/index.html\" target=\"_blank\" rel=\"noopener\">South Korea&#8217;s rate of testing for COVID-19 was 3,692 tests per million, while Italy&#8217;s stood at 826\/million<\/a>. That is why the <a href=\"https:\/\/abcnews.go.com\/Politics\/government-coronavirus-response-live-updates-trump-declares-national\/story?id=69580277\" target=\"_blank\" rel=\"noopener\">White House and top U.S. medical officials<\/a> and the <a href=\"https:\/\/www.cbsnews.com\/news\/nancy-pelosi-introduces-bill-to-respond-to-coronavirus-2020-03-12\/\" target=\"_blank\" rel=\"noopener\">Democrats<\/a> both announced immediate, widespread testing in the States. Testing will identify those who carry the virus so they can receive medical care, yet reassure those who don&#8217;t, who in turn can get on with their lives.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"When_will_there_be_a_COVID-19_cure\"><\/span>When will there be a COVID-19 cure?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"color: #000080;\"><span lang=\"zxx\"><u><a href=\"https:\/\/www.cnbc.com\/2020\/03\/16\/first-human-trial-for-coronavirus-vaccine-begins-monday-in-the-us.html\" target=\"_blank\" rel=\"noopener\">Stage one trials<\/a><\/u><\/span><\/span> on humans began yesterday, March 16, in the U.S. Also, a breakthrough came last Friday when Toronto&#8217;s Sunnybrook Hospital announced it had <span style=\"color: #000080;\"><span lang=\"zxx\"><u><a href=\"https:\/\/www.ctvnews.ca\/health\/coronavirus\/canadian-scientists-make-covid-19-research-breakthrough-isolating-virus-1.4851641\" target=\"_blank\" rel=\"noopener\">isolated the virus<\/a><\/u><\/span><\/span>, which will help lead to a vaccine. Now, scientists know what the enemy looks like. That said, it could a few months or a year to develop a vaccine. Until then, take precautions as noted above.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"When_will_COVID-19_Stocks_Markets_hit_bottom\"><\/span>When will COVID-19 Stocks &amp; Markets hit bottom?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>As of this writing, Toronto and New York indices have plunged 30% from their peaks.<\/p>\n<p>Yesterday, the <a href=\"https:\/\/ca.finance.yahoo.com\/news\/stock-market-news-live-updates-march-16-2020-220735000.html\" target=\"_blank\" rel=\"noopener\">DOW plunged 12.93%<\/a>, its worst one-day loss ever.<\/p>\n<p>The 2008-9 recession saw markets plummet 50%. It&#8217;s anyone&#8217;s guess, but I haven&#8217;t heard any analyst I know or in the media project lower than 50%. After yesterday&#8217;s closing bell, <a href=\"https:\/\/www.cnn.com\/2020\/03\/16\/investing\/dow-jones-stock-market-coronavirus\/index.html\" target=\"_blank\" rel=\"noopener\">Goldman Sachs warned clients that the S&amp;P could bottom at 2,000<\/a> by mid-year, which means a 41% plunge from record highs set only last month.<\/p>\n<p>Based on what financial analysts I&#8217;ve read and heard and from those I&#8217;ve spoken to, I agree that we will bottom at 40%, but I won&#8217;t guess when. It comes down to one metric: the number of new cases, particularly the in the U.S. If American new American cases start declining, then investors will regain confidence and markets will bounce sharply. Europe and North America are now locking down and launching widespread testing.<\/p>\n<p>The incubation period for the virus is two weeks, so I expect cases to increase\u2014and pressure stocks down, but testing, public lockdowns and and public awareness to self-isolate <i>should<\/i> help contain the spread of COVID-19 after March. Keep an eye on new cases.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"In_what_sector_should_I_pick_my_COVID-19_Stocks_to_buy\"><\/span>In what sector should I pick my COVID-19 Stocks to buy?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>If your horizon is several years and you&#8217;re a buy-and-hold investor (not a trader) then consider utilities, REITs, payments, consumer stables and biotech stocks.<\/p>\n<p><u>Utilities<\/u>: With long-term contracts guaranteeing revenues and a growing ESG movement, names like <a href=\"https:\/\/stockchase.com\/AQN-T\">Algonquin Power<\/a> (Ross Healy loves this stock) will maintain their earnings and strong dividends.<\/p>\n<p><u>REITs<\/u>: Apartment demand will remain strong in markets like Vancouver and Toronto, regardless of the outcome of COVID-19. <a href=\"https:\/\/stockchase.com\/CAR.UN-T\">CAP REIT<\/a> has had a tremendous run, and hasn&#8217;t fallen much during this brutal bear market. However, I can&#8217;t recommend mall REITs as strongly, as consumers stay home and buy on e-commerce.<\/p>\n<p><u>Payments<\/u>: <a href=\"https:\/\/stockchase.com\/V-N\">Visa<\/a> and <a href=\"https:\/\/stockchase.com\/MA-N\">Mastercard<\/a> have performed relatively well, not falling as far as the benchmarks during most days, yet spiking higher on buying days. Because consumers are staying home, the overall number of purchases will take a hit this quarter (despite online shopping), but I expect pent-up demand to coincide with the warm spring weather that will come. In other words, I expect cases to level off in the U.S. and markets to bounce back.<\/p>\n<p><span style=\"text-decoration: underline;\">Consumer staples<\/span>: Cinemas, basketball games, even restaurants and bars are closing for the next few weeks, but grocers will remain open and are seeing long line-ups as people stock up on goods. Since Friday, <a href=\"https:\/\/stockchase.com\/L-T\">Loblaw<\/a> has soared $10 and is spiking 7% to almost $70 as I write.<\/p>\n<p><u>Biotech<\/u>: Actually, it&#8217;s a little late getting into this space and it&#8217;s bit of a lottery to pick which company will be the first to bring a proven COVID-19 vaccine to the world. That said, <a href=\"https:\/\/stockchase.com\/REGN-Q\">Regeneron<\/a> is as good as any. Partnering with France&#8217;s <a href=\"https:\/\/stockchase.com\/SNY-N\">Sanofi<\/a>, Regeneron just announced it&#8217;s <span style=\"color: #000080;\"><span lang=\"zxx\"><u><a href=\"https:\/\/www.thestreet.com\/investing\/regeneron-launches-us-trials-for-coronavirus-treatment?puc=yahoo&amp;cm_ven=YAHOO&amp;yptr=yahoo\" target=\"_blank\" rel=\"noopener\">testing<\/a><\/u><\/span><\/span> an anti-COVID-19 drug in 16 U.S. cities.<\/p>\n<p><b>What COVID-19 Stocks sectors should I avoid?<\/b><\/p>\n<p><u>Oil<\/u>: The oil shock. Period.<\/p>\n<p><u>Cannabis<\/u>: Would have been down without the virus.<\/p>\n<p><u>Travel<\/u> (cruiselines): Hotels and airlines will be massacred this quarter, but once the rebound comes, businesspeople will travel and folks will vacation. If you hold hotels or airlines, keep holding. However, travelers won&#8217;t rush back to cruiselines, because they&#8217;ve proven themselves to be floating petri dishes of bacteria.<\/p>\n<p>&nbsp;<\/p>\n<p><em>(Disclosure: I own Algonquin Power and Visa.)<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Any investor practising hand&#8211;washing and social distancing is keeping his eye on the Big Graph. No, not the 50-day moving average, but the Johns Hopkins live COVID-19 map that tracks the number of new, current and resolved cases country-by-country around [&hellip;]<\/p>\n","protected":false},"author":12,"featured_media":153403,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"cwp_meta_box_check":"No","cwp_rev_product_name":"","cwp_rev_product_image":"","wppr_links":[],"cwp_rev_price":"","wppr_options":[],"wppr_pros":[],"wppr_cons":[],"footnotes":""},"categories":[17],"tags":[],"class_list":["post-154597","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-lists"],"wppr_data":{"cwp_meta_box_check":"No"},"_links":{"self":[{"href":"https:\/\/stockchase.com\/discover\/wp-json\/wp\/v2\/posts\/154597","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/stockchase.com\/discover\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/stockchase.com\/discover\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/stockchase.com\/discover\/wp-json\/wp\/v2\/users\/12"}],"replies":[{"embeddable":true,"href":"https:\/\/stockchase.com\/discover\/wp-json\/wp\/v2\/comments?post=154597"}],"version-history":[{"count":0,"href":"https:\/\/stockchase.com\/discover\/wp-json\/wp\/v2\/posts\/154597\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/stockchase.com\/discover\/wp-json\/wp\/v2\/media\/153403"}],"wp:attachment":[{"href":"https:\/\/stockchase.com\/discover\/wp-json\/wp\/v2\/media?parent=154597"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/stockchase.com\/discover\/wp-json\/wp\/v2\/categories?post=154597"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/stockchase.com\/discover\/wp-json\/wp\/v2\/tags?post=154597"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}