Profit From The Upheaval
Money Magazine Australia|November 2020
Drastic changes in behaviour by consumers, governments and central banks have created both opportunities and questions
Greg Hoffm

‘If somebody from 2019 had time-travelled here, would they notice anything different?” I asked my wife Janine, while out at a funky restaurant/bar recently. We were spending a few days in Sydney’s glitzy eastern suburbs during a house swap with some friends.

Apart from the mandatory hand sanitiser and QR code check-in upon entry, the only other noticeable change for someone who’d never experienced Covid-19 would be the spacing of the tables. Instead of being jammed in elbow-to-elbow in the narrow terrace building, the tables were comfortably spaced, which we enjoyed.

Wearing the poo-brown face mask Janine had bought for me (matches my beard, she says), I visited a nearby grocery store the next day. A few other people were wearing face masks and one older gentleman had a full face shield. That might have been more puzzling for our imagined time traveller. But to those of us who’ve lived through 2020, it’s understandable.

We’ve all learnt to adapt to the changes Covid-19 has wrought upon our daily lives, but what about the implications for our investments?

Obvious beneficiaries

As people became nervous about leaving their homes, or were ordered to stay there by lockdown restrictions, they sought to do more online. This turbocharged the growth of online retailers like Kogan. com (ASX: KGN) and Temple & Webster (TPW). Their share prices have shot up correspondingly, with Kogan up fivefold from its March low and Temple & Webster up almost eightfold since then.

The trick for sharemarket investors is that you generally don’t get great returns by chasing what has already become obvious to most others. Better to look for areas where the market may have under-reacted to a company’s improved prospects.

On that front, Frontier Digital Ventures (FDV) is of more interest to me. The company has benefitted from the pandemic and seen its shares rise but perhaps not by enough.

Continue reading your story on the app

Continue reading your story in the magazine

MORE STORIES FROM MONEY MAGAZINE AUSTRALIAView All

Step up to the next level

It’s been a tough year but this seven-point plan can help your SME recover and prosper in 2021

6 mins read
Money Magazine Australia
December / January 2021

Relishing a seat at the big table

Moving on up ... Hutchinson believes in taking advantage of opportunities when it comes to building a successful career.

8 mins read
Money Magazine Australia
December / January 2021

Play the smart card in giving

At a time when many people are worried about the future, there’s no need to overspend on a “feel-good” gift

3 mins read
Money Magazine Australia
December / January 2021

Buy soon, pay later

Would-be home buyers are being advised to make their move before government support dries up and prices rise too much

3 mins read
Money Magazine Australia
December / January 2021

Flourish ... or freeze in fear

Volatile markets are manna from heaven for investors who hold their nerve

5 mins read
Money Magazine Australia
December / January 2021

How The Winners Are Chosen

Thousands of products were compared across superannuation, managed funds, ETPs, banking, insurance, brokers and broadband/ mobiles

5 mins read
Money Magazine Australia
December / January 2021

There Is Life After Debt

Australia is well placed to “pay the piper” after the massive pandemic spending

3 mins read
Money Magazine Australia
December / January 2021

All The Good Works Pay Off

Concerns about climate change and the environment are driving the strong growth of ethical investing

5 mins read
Money Magazine Australia
December / January 2021

Shine A Light On How Your Nest Egg Is Growing

High fees and poor returns will harm your retirement lifestyle

6 mins read
Money Magazine Australia
December / January 2021

Life With ‘Boomerang' Kids

Adult children who still live at home are a growing challenge for parents

3 mins read
Money Magazine Australia
December / January 2021
RELATED STORIES

उपभोक्ताओं को धोखा नहीं दे पाएंगी टेलीकॉम कंपनियां

• ट्राई के ताजा दिशा-निर्देश-विज्ञापन में टैरिफ प्लान की देनी होगी स्पष्ट जानकारी • टेलीकॉम रेगुलेटर ने ग्राहकों के हित में मानकों को ज्यादा पारदर्शी बनाया • ग्राहक अपनी जरूरत और सुविधा के मुताबिक टैरिफ प्लान चुन सकेंगे

1 min read
Haribhoomi Delhi
September 20, 2020

किसानों और उपभोक्ताओं को मिलेगी राहत!

देश के कुछ राज्यों में किसानों और उपभोक्ताओं को राहत देने के उठाए जा रहे कदमों का बिज़नेस स्टैंडर्ड ने लिया जायजा

1 min read
Business Standard - Hindi
April 15, 2020