As we wait for the development of the vaccine, our best method of controlling the infection is to practice social distancing and adhering to the set quarantine procedures.
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However, we've come to the point of plateau where people get used to this 'New Normal', making it hard to conclude if the quarantine is still having its significant impact to the spread. The Stock Market is no exception, it is also starting to get used with the situation and some sectors are beginning to rally. Yes, jitters comes every now and then, and every drop is significant compared to the pre-virus era but it is still making progress.
As described in my previous article, What Are the Types of Stocks to Buy During Stock Market Recessions. Non-Cyclical or Defensive Stocks are the currently performing ones.
To help you in sorting out the industries, below are the industries defined by the Global Industry Classification Standards (GICS):
Cyclical Stocks
- Consumer Discretionary
- Automobile and Components
- Consumer Durables and Apparel
- Consumer Services
- Retailing
- Financial
- Banks
- Diversified Financial
- Insurance
- Industrials
- Capital Goods
- Commercial and Professional Services
- Transportation
- Information Technology
- Software and Services
- Technology Hardware and Equipment
- Semiconductors and Semiconductor Equipment
- Materials
Non-Cyclical Stocks or Defensive Stocks
- Consumer Staples
- Food and Staples Retailing
- Food, Beverage & Tobacco
- Household and Personal Products
- Energy
- Healthcare
- Health Care Equipment and Services
- Pharmaceuticals, Biotechnology, and Life Sciences
- Telecommunication Services
- Telecommunication Services
- Media and Entertainment
- Utilities
Caveat: Though this is a set standard, this is not a 1:1 scheme. Some cyclical industries, given the era, are performing also well. Examples are the IT and Financial Sectors.
As we adjust to our new normal, we also need to change our strategy to keep ourselves afloat in the stock market.
“Improvise Adapt Overcome”
Do you have some stocks positions or strategy that is effective in this trying times? Don't forget to share your perspective by commenting below.
