Covid-19 is a crisis for some people and an investment opportunities for some. If you are on the opportunities side, I think Covid-19 creates lots of opportunities who are patient.
The real opportunities will start arise after end of bank moratorium. The most impacted industries are tourism to be specific accommodation, passenger transport and travel agencies which constitute 12.4% of tourism employee or 3.5M x 12.4% = 434,000 employees would be impacted.
Stocks Investment to Watch
- Related to banking sectors
- Gaming sectors like Genting
- Accommodation like Shangri-la Hotels Bhd
- Related to airlines
I am personally more interested into banking sectors with good fundamental and investment view of 5 years.
For airlines try to avoid as even Warren Buffet sold off all his holdings in airlines industries even at a lost because according to him, the cost to fund the airlines business after Covid-19 is higher than selling it now.
Banks profits are much lower in the coming Q2 till Q4, 2020 due to moratorium, higher provision due to bad debt and stringent lending policies.
I expect some panic selling after the moratorium that we could tap on.
Real Estate Investment
Possible higher properties being auctioned or sell at lower market value after bank moratorium or even after the MCO (Movement Control Order).
Most of properties will be near by location of employees related to tourism and properties short term rent like AirBnb.
Building Your War Chest
In any investment you require cash in order to invest. So put aside saving from loan moratorium, EPF withdrawal as your war chest fund. Be patient.
Learn more about stocks and real estate investment, don’t simply invest.
For real estate, start monitor few locations that you are interested in. Look for the price movement and its surrounding. Invest in good locations.