top of page

Turn off the television and look at the sky

For the last 18 months we have not been able to move a lot. We have enjoyed our time at home, or maybe we have hated all these months. Many will have changed their lives forever, for good or for bad.

As countries open their borders and relax their restrictions, new possibilities open to everyone. On one side, about working life, many are changing in what is starting to be known as the “work-quitting pandemic”. On the other hand, people want to do something with their free time.

When you ask the people what they want to do once we can get out safely it is very clear the response, either they want to eat outside with friends or they want to travel. There is no one saying “once I can get out there I am going to change my phone” or saying “now is the time to buy a new television”. They have already done so and now they want to stay outside.

While many will just complain about the many people out when they go to the restaurant let’s see what the investors will very likely do, and how the market will move:

  • Netflix will decrease subscribers while cinemas will go up. This is a trend we have seen with Disney+: since kids can go back to school the amount of accounts have gone down for the first time since they launched the platform. I am no fan of cinemas and even I want to buy expensive popcorn, bad coke and enjoy a film while someone two rows behind is talking way too loud.

  • Cars will sell more, especially campers and long range electric cars. People don’t want to stay at home and since they don’t have to commute to work everyday what they need and want is a car to go far away into new parts they have never seen (but that were always there).

  • Travel will increase, smartphone video games use will remain. Long range travel will come back and will be without doubt one of the best seasons ever… (check out hotels stocks and airlines stocks as they are about to go wild for the next two quarters). But since travelling takes plenty of time, entertainment on the phone will remain popular.

  • Last but not least. Food will go up in a different way as they did last quarter. The main focus won’t be on family products or healthy habits food, but social food (and healthy social food, why not). We will see an increase on meat, coal, grills and beers sales, as well as an increase on sales of beer light, without alcohol and vegan products (the healthy habits are here to stay). Meanwhile food delivery will decrease and they will have to invest more in marketing, something they didn’t have to do during almost all of 2020 (have you noticed?).

My recommendation: take a look at Beyond Meat and Rolls Royce as they near the 52 minimum with great potential during the next half year. AMC is another good stock but since they went up as a meme stock the potential is not as big as with the other two.

Comments made on companies showcased are an expression of opinion only, and should not be construed in any manner whatsoever as recommendation to buy or sell any financial instrument at any time.


bottom of page